Apple, the dictatorship of the EU and free trade through the Free Territory & Free Port of Trieste

Analysis by Paolo G. Parovel

The recent decision of the European Commission that orders Apple to pay up to EUR 13 billion ($14.5 billion) for taxes that were not payed because of a tax ruling with Ireland, is weakening the cohesion of the EU even further, as well as favoring European States that do not belong to the EU, like the Free Territory of Trieste.

The tax ruling is a form of agreement with which a State grants to a Company a special tax treatment in exchange of investments in that Country so with a mutual and legitimate advantage that allows to relaunch the economy of weak Countries.

This means we are not talking about tax elusion or evasion, it does not violate the principle of free competition for it realizes that, and the consequent political-economic and environmental risks can and must be avoided within the legal system of each State and in the agreements between the State and the Company.

It is the EU that, prohibiting the tax ruling, prevents free competition, depriving its weakest Member States of a tool of economic freedom that is necessary for them not to succumb to the strongest one, Ireland itself is a clear example of it.

The real reason behind the prohibition if that the EU is an economic union dominated by the strongest States through regulations that increasingly limit sovereignty, free trade, free completion, and even agricultural production.

It is this inner political-economic dictatorship that prevents the EU from developing serious global economic strategies, and it has just refused, with unrealistic claims, to adhere to the free trade agreement with the USA (TTIP) instead of negotiating it rationally.

The exit of the United Kingdom from the EU, the independent choices of Hungary, and the dissatisfaction of other Member States confirm that the old pro-European rethorics are not enough to hide te necessity to liberalize internal agreements.

In the meantime, big Companies must turn to States that do not belong to the EU, like Turkey, that proposed to Apple best fiscal conditions than Ireland. But the most appealing chances are offered by the Free Territory of Trieste.

The present-day Free Territory of Trieste is, since 1947, a little independent European State with an international Free Port, monetary and financial sovereignty, the right to its own stock exchange, it has no public debt, no territorial, political or military disputes, and it is not belong to the EU.

Since it has a provisional regime of civil Government sub-entrusted to the responsibility of the Italian Government by virtue of an international mandate (the primary administrators are the USA and the UK) the Free Territory can implement European Treaties (art. 79 ECSC Treaty, art. 198 Euratom Treaty art. 229 TEC, art. 227 paragraph 4 TEEC, art. 355 paragraph 3 TFEU) but it is has not obligation to do it.

Companies can benefit of this special status in two ways: having their registered offices in Trieste without being subject to neither the EU or Italian taxes, and to produce goods within the international Free Port, which has a special regime and large areas available.

The administering Italian Government has a legal obligation to allow and to favor such economic activities. To receive any information and advice, contact the International Provisional Representative of the Free Territory of Trieste – I.P.R. F.T.T. (LINK).

© 13 Settembre 2016