Analysis
Tax avoidance—while legal—can shift tax burdens to other taxpayers, including individuals and small businesses lacking access to sophisticated tax planning. Studies (e.g., from the IMF, EU Tax Observatory) confirm this redistributive effect, though the scale of harm per case (like Apple’s) is debated. However, labeling it a 'crime' is misleading: Apple’s arrangements in Ireland were ruled *illegal state aid* by the EU (not criminal tax evasion), and the €13B repayment was overturned in 2020 by the EU General Court (later appealed). Vestager’s moral argument holds, but the legal characterization is imprecise.
Background
The 2016 EU Commission ruling found Ireland’s tax deals with Apple constituted illegal state aid under EU law, requiring repayment of €13B (+€1.2B interest). The case highlighted how multinational corporations exploit loopholes (e.g., 'Double Irish' structures) to minimize taxes, prompting global reforms like the OECD’s BEPS project. Ireland and Apple argued the taxes were properly assessed under Irish law, and courts later annulled the repayment order on procedural grounds.
Verdict summary
Vestager’s claim that tax avoidance harms citizens and small businesses is broadly supported by economic research, but the framing as a 'crime' oversimplifies legal (though aggressive) tax strategies used by corporations like Apple.