Apple risks losing $14 billion in tax at top EU court

livemint.com:

Apple, an adviser to Europe's top court on Thursday said an European Union (EU) tribunal made legal errors when it ruled in favour of the iPhone maker over a $14 billion tax order. The adviser also said the case should be reviewed again. In 2016, the European Commission had said that Apple benefited from two Irish tax rulings for more than two decades that artificially reduced its tax burden to as low as 0.005% in 2014.

In 2020, the EU general court upheld Apple's challenge, saying that regulators had not met the legal standard to show Apple had enjoyed an unfair advantage. But advocate General Giovanni Pitruzzella at the EU Court of Justice (CJEU) said that the judges should set aside the general court judgment and refer the case back to the lower tribunal. “The judgment of the General Court on 'tax rulings' adopted by Ireland in relation to Apple should be set aside," Pitruzzella said.

The general court committed a series of errors in law and had also failed “to assess correctly the substance and consequences of certain methodological errors that, according to the Commission decision, vitiated the tax rulings", he also said. “It is therefore necessary for the General Court to carry out a new assessment." The CJEU ruling is expected in the coming months. Apple and Ireland had appealed against the ruling.

Apple never had to hand over the full amount, which Ireland has been holding in an escrow account. “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," an Apple spokesperson quoted by Reuters said.