In a landmark ruling, the European Court of Justice has upheld the European Union’s demand for Apple to pay €13 billion in back taxes to Ireland, marking a significant defeat for the tech giant. This decision sets a major precedent for the regulation of Big Tech companies, as it reaffirms the EU’s commitment to curbing tax avoidance by multinational corporations operating within its borders.

The case, which dates back to 2016, centres around allegations that Apple received illegal state aid from Ireland through preferential tax arrangements. The European Commission argued that these agreements allowed Apple to avoid paying its fair share of taxes on profits generated in Europe, effectively granting the company an unfair competitive advantage. The Commission initially ordered Apple to repay €13 billion, a decision the company contested in court.

Apple’s defence has always hinged on the argument that it followed the tax laws as they were written and that the profits in question were largely attributable to its operations outside of Europe. Despite this, the EU maintained that Apple’s arrangement with Ireland constituted illegal state aid, as it allowed the company to channel significant revenue through the country while paying a fraction of the taxes it would have owed in other jurisdictions.

This ruling is seen as a watershed moment in the ongoing debate around tax fairness and the role of multinational corporations in the global economy. For the European Union, the outcome reaffirms its position as a global leader in the push for corporate tax transparency and accountability. By holding Apple accountable for its tax practices, the EU is sending a clear message to other tech giants, signalling that no company, regardless of its size or influence, is above the law.

The implications of this decision are likely to reverberate throughout the tech industry, with other major corporations potentially facing increased scrutiny over their tax arrangements. In recent years, there has been growing public and governmental pressure to ensure that Big Tech companies contribute their fair share to the economies in which they operate. This ruling could catalyze further regulatory action, both within the EU and globally.

For Apple, the financial impact of the ruling is significant, but perhaps more important is the reputational damage it may suffer. As one of the world’s most valuable companies, Apple has long been in the spotlight for its tax practices, and this decision is likely to reignite debates over corporate responsibility and the ethics of tax avoidance.

The Central Bank of Cyprus (CBC) has released its latest report on the interest rates offered by credit institutions across the country for July 2024, shedding light on the economic landscape in a period marked by evolving global financial conditions. With interest rates playing a critical role in shaping the borrowing and investment behaviour of businesses and individuals, these figures offer valuable insights into the health of the Cypriot economy.

According to the CBC’s data, interest rates on deposits remained relatively stable compared to previous months. The interest rate for new deposits with a maturity of up to one year held at an average of 0.82%, while overnight deposits for households saw a marginal decline, reaching 0.04%. This slight decrease in overnight deposit rates reflects the broader market’s conservative approach to short-term liquidity, a common trend as economic uncertainty continues to weigh on the eurozone.

For businesses, the rates on overnight deposits remained flat, standing at 0.00%, underscoring the low-yield environment that has persisted for much of the year. This pattern aligns with European Central Bank (ECB) policies, which have kept interest rates subdued to manage inflationary pressures while stimulating investment. As a result, businesses and investors are navigating a challenging environment where low interest rates offer limited returns on traditional savings, potentially pushing them toward riskier, higher-yield investments.

On the lending side, the CBC’s report highlights a slight increase in interest rates for new loans. The interest rate for loans to households for consumer credit increased to 5.80%, up from the previous month’s figure of 5.69%. Meanwhile, loans for house purchases were offered at an average rate of 4.34%, a modest rise compared to June. This uptick, while not dramatic, signals potential concerns around inflationary trends and the cost of borrowing for households.

For businesses, the lending environment remained dynamic, with rates for loans up to €1 million rising to 5.74%. This upward movement reflects broader economic shifts, as businesses face higher borrowing costs in the wake of inflation and tightening global financial conditions.

 Chief Scientist Demetris Skourides participated in a recent Invest Cyprus event in New Delhi, India, aimed at promoting Cyprus as an emerging technology and innovation hub, as well as a reliable gateway for investments to and from Europe.

According to a press release, the 5 September meeting was also attended by the Deputy Minister for Research, Innovation and Digital Policy,  Nicodemos Damianou, the High Commissioner of the Republic of Cyprus to India, Evagoras Vryonides, the CEO of Invest Cyprus, Marios Tannousis, the executives of PWC, Chrysilios Pelekanos, and Eurobank, Panayiotis Chrystostomou, as well as several entrepreneurs and potential investors from India.

Skourides had the opportunity to present the research, technology and innovation ecosystem of Cyprus, to highlight the incentives provided to attract investment and talent to the country, as well as the efforts made by the state to make Cyprus a hub for research, innovation and international entrepreneurship, stressing that Cyprus presents high levels of scientific excellence, as it has a remarkable research potential with significant achievements both at national and European level.

He also emphasised the notable research infrastructure of the Centres of Excellence that have been developed in Cyprus with co-funding by the European Commission, the services they provide and the important role they play in the development of the ecosystem, as well as the opportunities presented for the internationalisation of their services through new partnerships and investments from countries such as India.

It is added that Skourides held talks with over 30 stakeholders and provided a thorough briefing on the benefits of cooperation between entities from Cyprus and India, tax incentives, the funding programmes of the Research and Innovation Foundation which can be exploited, as well as the opportunities for access to the single European market from the country.

During his meetings, he identified and provided specific opportunities for cooperation with innovative companies in Cyprus, specialized in Fintech, Regtech, Healthtech, Agrofood and ICT, areas that are highlighted in the country’s Smart Specialization Strategy and are priorities of the Research and Innovation Strategy 2024, it is added.

It is also noted that the Director General of the Cyprus Research & Innovation Foundation, Theodoros Loukaides, also travelled to New Delhi to participate in the one-day CII India-Mediterranean Business Conclave, organised by the Ministry of External Affairs of India and the Confederation of Indian Industry (CII), with the participation of representatives from 28 countries. At the same time, the Deputy Minister of Research, Innovation and Digital Policy led the Cypriot representation.