Once more, Apple’s EU tax dispute is grabbing media attention. Despite the court’s earlier decision in favor of the iPhone manufacturer, an advisor to Europe’s highest court stated on Thursday that the court erred in law and that the issue needs to be reexamined.
The European Commission charged Apple in 2016 with profiting from two Irish tax rulings. According to reports, the IT company could cut its tax burden in 2014 to as little as 0.005%. But in 2020, the General Court of the European Union declared that there was insufficient evidence provided by EU regulators to establish that Apple had profited from Irish tax rulings.
EU rules against Apple in a $14 billion tax case
The decision gave Apple new hope for avoiding a $14 billion tax bill. Giovanni Pitruzzella, the EU Court of Justice’s advocate general, is currently arguing that the case should be referred to a lower court and that the General Court’s decision should be overturned. Pitruzzella said that the General Court made “a series of errors.”
Furthermore, it was unable to accurately evaluate the significance and ramifications of certain methodological flaws that the Commission determined invalidated the tax determinations. Pitruzzella also mentioned that the General Court ought to conduct a fresh evaluation. In the upcoming months, the CJEU will make its final verdict public.
Apple contested the ruling of the new court. Doublin added that it had not given the iPhone manufacturer any assistance. “We thank the court for its time and ongoing consideration in this case,” an Apple representative stated. We think the General Court’s decision, which unequivocally stated that Apple did not get any governmental assistance or preferential treatment, should be upheld.
The tax proceedings against Apple and other corporations that deal with EU countries were initially initiated by EU antitrust director Margrethe Vestager. EU officials examined agreements that might give corporations disproportionate state subsidies. Vestager has prosecuted numerous tax cases against large corporations, such as Stellantis, Starbucks, and Amazon. She is now looking into tax cases, including Nike and IKEA.
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