Apple CFO Luca Maestri to Lead Challenge Against Irish Tax Ruling in Luxembourg Court This Week

Apple this week is set to challenge the European Commission's order to repay 13 billion euros in Irish back taxes, according to Reuters.

European Commisssion
The report claims Apple is expected to send a six-person delegation led by its CFO Luca Maestri to a two-day court hearing in Luxembourg on Tuesday and Wednesday. Apple will likely argue many of the same points that Apple CEO Tim Cook penned in a public letter about the tax ruling three years ago.

In a nutshell, Apple believes it follows the law and pays all the taxes it owes in every country where it operates, including Ireland. Apple has also said nearly all of its research and development takes place in the United States, so that is where the company should and does pay the majority of its taxes.

An excerpt from Cook's letter:

The Commission's move is unprecedented and it has serious, wide-reaching implications. It is effectively proposing to replace Irish tax laws with a view of what the Commission thinks the law should have been. This would strike a devastating blow to the sovereignty of EU member states over their own tax matters, and to the principle of certainty of law in Europe.

Ireland is also appealing the ruling, but Apple has finished paying back the 13 billion euros in the meantime, with the funds stored in an escrow account. If the order is overturned, the money would be returned to Apple.

In 2016, following a three-year investigation, the European Commission found Apple received illegal state aid from Ireland. Apple allegedly paid between 0.005 percent and one percent in taxes in Ireland between 2003 and 2014, compared to the the country's headline 12.5 percent corporate tax rate at the time.

Popular Stories

airpods 4 blue

Apple Finally Explains How to Install New Firmware on Your AirPods

Monday January 27, 2025 11:17 am PST by
Apple regularly releases new firmware for the AirPods, AirPods Pro, and AirPods Max, but the company has historically provided limited information on how to initiate an update. That changed today, and Apple updated its AirPods firmware support page with more specific instructions. Prior to today, here's what Apple said on the subject: Firmware updates are delivered automatically while your...
iOS 18

iOS 18.3 Available as Soon as Today With These New Features

Monday January 27, 2025 6:35 am PST by
Update: Apple has released iOS 18.3. In its press release unveiling a new Black Unity Sport Loop for the Apple Watch today, Apple confirmed that iOS 18.3 is "upcoming." According to Bloomberg's Mark Gurman, Apple Stores are being instructed to update the software on demo devices today, so iOS 18.3 should be released either today or within the next few days. Below, we recap everything new...
Generic iOS 18

iOS 18.4 Beta Coming Soon With These New Features for Your iPhone

Friday January 24, 2025 8:16 am PST by
iOS 18.3 is expected to be widely released next week, and that means the first iOS 18.4 beta for iPhones should be just around the corner. Apple has previously implied that iOS 18.4 will be released in April, as that is when it promised to make Apple Intelligence available in even more languages. Below, we outline what to expect from iOS 18.4 so far. Apple Intelligence for Siri Siri ...
iOS 18

5 New Things Your iPhone Can Do in iOS 18.3

Friday January 24, 2025 1:55 am PST by
Apple is set to release iOS 18.3 next week, bringing further refinements to Apple Intelligence features, a couple of neat new capabilities to iPhone 15 Pro and iPhone 16 devices, and bug fixes. While not quite as packed with new features as Apple's preceding iOS 18 point releases, iOS 18.3 still introduces capabilities that aim to make your iPhone smarter and more intuitive. Below, we've...
iOS 18

Apple Expected to Release iOS 18.3 This Week With These New Features

Thursday January 23, 2025 6:41 am PST by
iOS 18.3 should be released to the public this week, following beta testing since mid-December. While the software update is a relatively minor one, it still includes a handful of new features, changes, and bug fixes for iPhones. Below, we recap everything new in iOS 18.3. Notification Summary Changes Examples of inaccurate Apple Intelligence notification summaries Apple Intelligence...
tvOS 18 Thumb 3

Apple Releases tvOS 18.3

Monday January 27, 2025 10:00 am PST by
Apple today released tvOS 18.3, the newest version of the tvOS 18 operating system that came out in September. tvOS 18.3 comes more than a month after Apple released tvOS 18.2, and it is available for the Apple TV 4K and the Apple TV HD models. tvOS 18.3 can be downloaded using the Settings app on the ‌Apple TV‌. Open up Settings and go to System > Software Update to get the new software....
apple tv 4k new orange

New Apple TV Launching This Year With These New Features

Wednesday January 22, 2025 6:01 pm PST by
A new Apple TV is expected to be released later this year. In this article, we recap rumored features and changes for the device. The next Apple TV will be equipped with Apple's own combined Wi-Fi and Bluetooth chip, according to Bloomberg's Mark Gurman. He said the chip supports Wi-Fi 6E, which would be an upgrade over the current Apple TV's standard Wi-Fi 6 support. Wi-Fi 6E extends the...
iOS 18

Apple Releases iOS 18.3 With Visual Intelligence and Notification Summary Improvements

Monday January 27, 2025 10:04 am PST by
Apple today released iOS 18.3 and iPadOS 18.3, the third major updates to the iOS 18 and iPadOS 18 software that came out last year. iOS 18.3 and iPadOS 18.3 come six weeks after Apple released iOS 18.2 and iPadOS 18.2. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Apple has also released iPadOS 17.7.4 for...

Top Rated Comments

Sathinator1 Avatar
70 months ago
Apple should pay its fair share of tax in any part of the world that it operates. These tax minimization schemes are a disgrace.
Score: 30 Votes (Like | Disagree)
Nuno Lopes Avatar
70 months ago
As an European I totally agree with Apple assessment. One of the ways small European countries have to compete and attract mass scale businesses such as the ones of Apple, against big countries like Germany and France is by negotiating better tax conditions.

Considering the small dimensions and population of these countries versus the massive scale of these companies businesses they can at a lower tax, supply financially their needs lawfully.

Of course the German, the French and the soon to leave the British, don’t like this. Their view is anti competitive. They want to have the advantages of being geographically big and large populations as well as tax advantages. They have cooked the European competition laws to their advantage but the issue of sovereignty has kept them from touching local / country tax laws. If they see this through they will be able to do whatever with local tax laws, and cook them to their advantage.

This is as ridiculous as small countries advocating that it’s unfair for them to be geographically small or not as well positioned in the flux of businesses in the map.

Mind you that all the loans given to smaller countries at better rates were for their development in exchange of commercial and production quotas towards the larger countries with plenty of agricultural fields and industrial capacity. So the lunch was not at all free. The all thing culminated with the Greek incident with the German suggestion for them to sell Islands in order to pay their dept.

Cheers.
Score: 20 Votes (Like | Disagree)
tabilo Avatar
70 months ago
As a European I disagree with Apple on this. The European idea can only work if there is a fair competition. Countries like Ireland, Luxembourg and partly UK and the Netherlands are using loopholes to attract international cooperations to avoid taxes, which the rest of the EU has to pay for.
Score: 16 Votes (Like | Disagree)
apolloa Avatar
70 months ago
Good luck Apple, you’ve got absolutely no hope of winning but good luck all the same.
Personally I think you should pay your taxes like everyone else and stop milking it of society but that’s just me.
Score: 10 Votes (Like | Disagree)
az431 Avatar
70 months ago
Apple should pay its fair share of tax in any part of the world that it operates. These tax minimization schemes are a disgrace.
So you don’t take any tax deductions that you are entitled to because it would be a “disgrace”?

I thought so.
Score: 10 Votes (Like | Disagree)
lkrupp Avatar
70 months ago
Why bother, Apple. This is a done deal. You think you can talk the EU out of $15B? They’re drooling over the prospect of getting their hands on that cash.
Score: 9 Votes (Like | Disagree)