Apple’s fight against a $14 billion EU tax bill suffers a setback
A European tribunal made legal errors when it ruled in favor of Apple over a €13 billion ($14 billion) tax order and should review the case again, an adviser to Europe’s top court said Thursday, in a potential setback for the iPhone maker.
The tax case against Apple (AAPL) dates back years and was part of a crackdown by the European Union’s antitrust chief Margrethe Vestager on deals between multinationals and EU countries that regulators saw as unfair state aid.
In a 2016 decision, the European Commission, the EU’s executive arm, said Apple had 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.
Apple challenged the ruling, and the EU’s General Court upheld the challenge in 2020, saying regulators had not met the legal standard to show Apple had enjoyed an unfair advantage.