Apple Faces a Setback Against a $14 Billion EU Tax Bill،
In a significant development, an ECJ adviser has advised against the 2020 ruling that favors Apple in a case involving a $14 billion EU tax bill. The advisor, Giovanni Pitruzzella, claims that the General Court’s decision contains legal errors, notably in the assessment of the nature of Apple’s relations with Ireland and in the taking into account of all the evidence presented by the European Commission.
The ECJ, the European Union’s highest court with rulings binding on all EU member states, must now decide whether to overturn the General Court’s ruling, potentially forcing Apple to foot the big tax bill. Ireland.
The case dates back to 2016, when the European Commission determined that Ireland provided illegal state aid to Apple through two tax rulings, allowing the tech giant to artificially reduce its tax obligations. The commission ordered Ireland to collect 13 billion euros ($14 billion) in back taxes from Apple.
Despite Apple’s appeal to the General Court, which upheld the commission’s decision in 2020, the court also concluded that the commission failed to demonstrate that Apple had unfairly benefited from the tax rulings.
In response, the European Commission filed an appeal with the ECJ, claiming that the General Court’s decision contains legal errors. Pitruzzella, the ECJ advisor, agrees with the commission and suggests overturning the General Court’s decision and referring the case to the ECJ.
The final decision of the ECJ is expected in the coming months. If he agrees with the advisor’s recommendation, it will be a significant victory for the European Commission in its ongoing efforts to combat tax avoidance by multinational corporations. On the other hand, it would be a setback for Apple, which has long fought against the European tax bill.
The ramifications of the case extend beyond the parties directly involved. A ruling against Apple could set a precedent for EU countries in clawing back taxes from multinational companies that receive illegal state aid. It could also encourage tax authorities around the world to take a tougher stance against tax avoidance schemes.
The European Union is closely monitoring the situation, particularly with regard to corporate tax reform. A ruling against Apple could strengthen the EU’s negotiating position with multinational companies on tax reform. Despite its disappointment with the advisor’s recommendation, Apple remains confident in the Court’s decision. The tech giant believes the CJEU will uphold the decision.
The ongoing legal battle between Apple and the European Commission represents a high-stakes clash between one of the world’s largest multinational corporations and the formidable economic bloc of the European Union. The outcome is expected to have far-reaching consequences for multinational corporations, the EU and global tax authorities, shaping the future landscape of corporate taxation and regulatory efforts.
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