Apple's Tax Spat Takes Another Turn: EU Advisor Recommends Nullifying Legal Victory
- Wednesday, October 16, 2024
In a surprising twist, an advisor to the highest court in the European Union has suggested that Apple's legal victory in a long-standing tax dispute should be nullified. This latest development reopens the tech giant's $15 billion problem and raises uncertainties regarding the final outcome.
Giovanni Pitruzzella, advocate general for the Court of Justice of the European Union, expressed his opinion that the previous ruling in favor of Apple by the General Court should be invalidated. Pitruzzella's statement provides a glimpse into how the EU's top court may rule, with a decision expected next year.
The dispute began when the European Commission ordered Ireland—a tax-friendly hub for numerous U.S. tech giants—to reclaim approximately €13.1 billion from Apple. The commission deemed Apple's tax advantages to be illegal state aid. In 2018, Ireland collected €14.3 billion ($15.3 billion) from Apple, representing back taxes and interest, which was subsequently held in escrow.
In 2020, the EU's General Court sided with Apple's appeal. However, the commission escalated the case to the Court of Justice, leading to Pitruzzella's recent declaration that the General Court had made several legal errors, including methodological missteps. This challenges the notion that Apple would regain its $15 billion following the previous ruling.
Despite being the world's most valuable public company, $15 billion is a significant sum even for Apple. Pitruzzella's ominous opinion introduces a wave of uncertainty for the iPhone maker and keeps this landmark case alive for the EU's regulators who are determined to take a tough stance on tech companies.
Apple has yet to respond to requests for comment.
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