Apple Could Pay 'Total Political Crap' $14 Billion Tax Bill to EU After All

Apple has suffered a setback in its €13 billion ($14 billion) tax dispute with Brussels after an advisor to the EU's highest court said the company's victory in an earlier ruling should be thrown out (via Financial Times).

European Commisssion
Giovanni Pitruzzella, advocate-general of the European Court of Justice (ECJ), said on Thursday that Apple's win in the EU General Court "should be set aside" because it is riddled with mistakes.

While such opinions by advocates-general are non-binding, the top EU tribunal follows such advice in the majority of cases, and it is set to issue its binding ruling in the coming months.

In 2020, the General Court said it supported the EU's right to investigate national tax arrangements, but it ultimately overturned a ruling by the European Commission stating that Apple should pay €13 billion euros in tax to the Irish government.

Following Apple's appeal, the EU's second-highest court said the EU authority, led by antitrust chief Margrethe Vestager, had failed to show that Apple had received an illegal economic advantage in Ireland over tax.

Four years earlier, Apple CEO Tim Cook called the EC's original decision "total political crap" and said that Apple believed it would be reversed. "The decision is wrong, and it's not based on law or facts, it's based on politics. And I think it's very important that we stand up and say that very loudly," said Cook at the time.

However, Pitruzzella said on Thursday the General Court ruling had "committed a series of errors" and "failed to assess correctly the substance and consequences of certain methodological errors." Pitruzzella said the court needed "to carry out a new assessment" as a result.

Responding to the opinion of the advocates-general, Apple said on Thursday that the lower court "was very clear that Apple received no selective advantage and no State aid, and we believe that should be upheld."

An ECJ ruling is expected next year.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Popular Stories

Apple iPhone 16e Feature

Apple Announces iPhone 16e With A18 Chip and Apple Intelligence, Pricing Starts at $599

Wednesday February 19, 2025 8:02 am PST by
Apple today introduced the iPhone 16e, its newest entry-level smartphone. The device succeeds the third-generation iPhone SE, which has now been discontinued. The iPhone 16e features a larger 6.1-inch OLED display, up from a 4.7-inch LCD on the iPhone SE. The display has a notch for Face ID, and this means that Apple no longer sells any iPhones with a Touch ID fingerprint button, marking the ...
iphone 17 pro asherdipps

iPhone 17 Pro Models Rumored to Feature Aluminum Frame Instead of Titanium Frame

Tuesday February 18, 2025 12:02 pm PST by
Over the years, Apple has switched from an aluminum frame to a stainless steel frame to a titanium frame for its highest-end iPhones. And now, it has been rumored that Apple will go back to using aluminum for three out of four iPhone 17 models. In an investor note with research firm GF Securities, obtained by MacRumors this week, Apple supply chain analyst Jeff Pu said the iPhone 17, iPhone...
apple launch feb 2025 alt

Here Are the New Apple Products We're Still Expecting This Spring

Thursday February 20, 2025 5:06 am PST by
Now that Apple has announced its new more affordable iPhone 16e, our thoughts turn to what else we are expecting from the company this spring. There are three product categories that we are definitely expecting to get upgraded before spring has ended. Keep reading to learn what they are. If we're lucky, Apple might make a surprise announcement about a completely new product category. M4...
Generic iOS 18

Here's When Apple Will Release iOS 18.4

Wednesday February 19, 2025 11:38 am PST by
Following the launch of the iPhone 16e, Apple updated its iOS 18, iPadOS 18, and macOS Sequoia pages to give a narrower timeline on when the next updates are set to launch. All three pages now state that new Apple Intelligence features and languages will launch in early April, an update from the more broader April timeframe that Apple provided before. The next major point updates will be iOS ...
apple launch feb 2025

Tim Cook Teases an 'Apple Launch' Next Wednesday

Thursday February 13, 2025 8:07 am PST by
In a social media post today, Apple CEO Tim Cook teased an upcoming "launch" of some kind scheduled for Wednesday, February 19. "Get ready to meet the newest member of the family," he said, with an #AppleLaunch hashtag. The post includes a short video with an animated Apple logo inside a circle. Cook did not provide an exact time for the launch, or share any other specific details, so...
apple c1

Apple Unveils 'C1' as First Custom Cellular Modem

Wednesday February 19, 2025 8:08 am PST by
Apple today announced its first custom cellular modem with the name "C1," debuting in the all-new iPhone 16e. The new modem contributes to the iPhone 16e's power efficiency, giving it the longest battery life of any iPhone with a 6.1-inch display, such as the iPhone 15 and iPhone 16. Expanding the benefits of Apple silicon, C1 is the first modem designed by Apple and the most...
Apple Northbrook

Apple Store Permanently Closing at Struggling Mall in Chicago Area

Tuesday February 18, 2025 8:46 pm PST by
Apple is permanently closing its retail store at the Northbrook Court shopping mall in the Chicago area. The company confirmed the upcoming closure today in a statement, but it has yet to provide a closing date for the location. Apple Northbrook opened in 2005, and the store moved to a larger space in the mall in 2017. Apple confirmed that affected employees will continue to work for the...

Top Rated Comments

DownUnderDan Avatar
17 months ago

Is anyone surprised? The EU is one step short of communism with their blatant subjective promulgation against anything that appears to be success.

The corrupt lawmakers see money and think “hey, we should decide what they do with it…let’s take it!”

The EU is becoming so crazy that it may be best, financially, for Apple to just sunset the market entirely. Let’s see how long the EU will keep this up once Apple starts closing stores.
You might want to do some reading on what communism actually is.
Score: 42 Votes (Like | Disagree)
EmotionalSnow Avatar
17 months ago

Is anyone surprised? The EU is one step short of communism with their blatant subjective promulgation against anything that appears to be success.

The corrupt lawmakers see money and think “hey, we should decide what they do with it…let’s take it!”

The EU is becoming so crazy that it may be best, financially, for Apple to just sunset the market entirely. Let’s see how long the EU will keep this up once Apple starts closing stores.
Many Europeans have either lived in a then-communist country or only a few hundred km from the border of one and yet Americans, who basically are on the other side of the planet continue to lecture us as to what communism is. No thanks, we certainly have more experience than you.
Score: 34 Votes (Like | Disagree)
Wildkraut Avatar
17 months ago

Wait a minute wtf. The equivalent of the attorney general can just say a court decided incorrectly and that’s it, it gets overturned? How is that democratic?
Hmm how is that democratic?

Let me try to show...



And then look at all the EU countries with "Full democracy"...

https://en.wikipedia.org/wiki/The_Economist_Democracy_Index

Attachment Image
Score: 32 Votes (Like | Disagree)
playtech1 Avatar
17 months ago
I think the issue the EU has is really with Ireland rather than Apple, in that the Irish government went too far in offering an effective subsidy to entice Apple to its shores that was in breach of the EU state aid rules that aim (amongst other things) to stop EU member states competing with one another to bribe companies to base themselves there.

From the linked article it was alleged Ireland offered Apple a deal of 2% tax instead of its normal 12.5% tax.

From Wikipedia that deal would be State Aid - and so potentially illegal - if it met the following criteria:

1. "the use of state resources"
2. "the measure must confer an advantage to a certain undertaking"
3. "the advantage must be selective"
4. "the measure must distort competition"
5. "affect trade between member states".

At a high level if that kind of special tax discount was given it seems pretty clear that Ireland is in the wrong. Perhaps harsh though for Apple to be caught in the crossfire, but from the EU's perspective it was the recipient of the state aid and must now disgorge it.
Score: 29 Votes (Like | Disagree)
joecomo Avatar
17 months ago
Always remember: The EU gave us USB-C finally
Score: 27 Votes (Like | Disagree)
cwt2nospam Avatar
17 months ago

ECJ is a kangaroo court, it has no resemblance to a court of law, it's run by the EU bureaucrats, to rule over any legal court rulings, for the benefit of EU's political agenda's.
If that's what it takes to get multinational corporations to pay their taxes, so be it.

I'm huge Apple fan. I've been buying Macs since the 1980s, iPhones since 2007, and I've had a few iPads as well. My next purchase in each of these categories will be from Apple, but none of that means I'm in favor of any corporation paying a lower tax rate than working people, as happens far too often.
Score: 25 Votes (Like | Disagree)