EU rules against Apple in a $14 billion tax case

Apple’s tax case in the EU is again making the headlines. While the court previously ruled in favor of the iPhone maker, an adviser to Europe’s top court said on Thursday that the court made a legal error and the case should be reviewed again.

In 2016, the European Commission accused Apple of benefiting from two tax rulings in Ireland. The tech firm could reportedly reduce its tax burden to as low as 0.005% in 2014. However, in 2020, the European Union’s General Court ruled that the EU regulators don’t have convincing evidence to prove Apple has benefited from Irish tax rulings.

Apple’s tax case in the European Union has resurfaced with a $14 billion bill

The ruling revived Apple’s hopes to escape a $14 billion tax bill. Meanwhile, advocate General Giovanni Pitruzzella at the EU Court of Justice (CJEU) now argues that CJEU judges should refer the case to a lower tribunal and discard the General Court ruling. According to Pitruzzella, the General Court committed “a series of errors.”

Additionally, it failed “to assess correctly the substance and consequences of certain methodological errors that, according to the Commission decision, vitiated the tax rulings.” Pitruzzella added the General Court should carry out a new assessment. The CJEU will announce its final ruling in the coming months.

Apple refuted the new court’s decision. Doublin also said it had not provided any special aid to the iPhone maker. An Apple spokesperson said, “We thank the court for its time and ongoing consideration in this case. The General Court’s ruling was very clear that Apple received no selective advantage and no state aid, and we believe that should be upheld.”

The EU antitrust chief Margrethe Vestager first started the tax cases against Apple and other multinationals that trade with EU countries. The EU regulators scrutinized deals that could provide unfair state aid to companies. Vestager has run multiple tax cases against big companies, including Amazon, Starbucks, and Stellantis. She’s now investigating IKEA and Nike tax cases.