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

iPhone 17 Pro 34ths Perspective

iPhone 17 Pro Launching Later This Year With These 10 New Features

Sunday March 23, 2025 10:00 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of March 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
maxresdefault

Apple Releases iOS 18.4 With Priority Notifications, Ambient Music, New Emoji and More

Monday March 31, 2025 10:03 am PDT by
Apple today released iOS 18.4 and iPadOS 18.4, the fourth major updates to the iOS 18 and iPadOS 18 operating system updates that came out last year. iOS 18.4 and iPadOS 18.4 come two months after Apple released iOS 18.3 and iPadOS 18.3. Subscribe to the MacRumors YouTube channel for more videos. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to...
Magic Mouse Green

What to Expect From the Magic Mouse 3

Saturday March 29, 2025 10:15 am PDT by
Apple is reportedly working on a new Magic Mouse. Below, we recap what to expect. The two key rumors for the Magic Mouse 3 so far include a relocated charging port, along with a more ergonomic design. It was briefly rumored that the Magic Mouse 3 would also feature voice control, but that was misinterpreted information. Relocated Charging Port While the Magic Mouse switched from...
top stories 2025 03 29

Top Stories: WWDC 2025 Announced, iPhone 17 Pro and iOS 19 Rumors, and More

Saturday March 29, 2025 6:00 am PDT by
Apple's big developer event is a little over two months away, and rumors about what we can expect to see in Apple's next major operating system updates are becoming increasingly frequent. A public release of iOS 18.4 is also imminent with a number of updates and improvements, although we won't be getting the major Apple Intelligence Siri upgrades that had reportedly been planned for this...
iOS 18

iOS 18.4 Expected Next Week - Here Are the Release Notes

Friday March 28, 2025 2:01 pm PDT by
With the second release candidate of iOS 18.4 that Apple seeded out today, the company finally provided us with release notes that give a full rundown on what to expect. There's an Apple Vision Pro app, new Apple Intelligence features for notifications and additional language support, plus an Apple News Food feature for Apple News+ subscribers, and several updates that should improve the...
Foldable iPhone 2023 Feature Homescreen

Six Things to Know About Apple's Upcoming Foldable iPhone

Friday March 28, 2025 3:54 pm PDT by
We've been hearing rumors about a foldable iPhone for almost a decade now, but it looks like we might finally see the device come to fruition in 2026. We're going to be waiting many more months for the foldable iPhone, but so far we're hearing good things. Apple wants to make it creaseless. It's taken Apple multiple years to design a foldable iPhone that it's satisfied with because Apple ...
iOS 19 visionOS UI Elements

Apple Codename Provides Clue About iOS 19's Rumored New Design

Sunday March 30, 2025 6:40 am PDT by
Multiple sources have claimed that iOS 19 will introduce a new design with more translucent buttons, menus, notification banners, and more, and there is now another clue that points towards this glass-like appearance. Bloomberg's Mark Gurman today said the new design project is codenamed "Solarium" internally. A solarium is a room with glass walls that allow in plenty of sunlight, so this...
ipad pro 2024

Gurman: New iPad Pro and MacBook Pro Models With M5 Chips to Launch Later This Year

Sunday March 30, 2025 6:06 am PDT by
Apple's next-generation iPad Pro models with the M5 chip will "launch this year," according to Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman said the new iPad Pro models have progressed to an "advanced testing" stage, and he expects mass production of the devices to begin in the second half of this year. If that timeframe is met, the new iPad Pro models could launch...
macOS Sequoia Feature

Apple Releases macOS Sequoia 15.4 With Mail Categorization and More

Monday March 31, 2025 10:04 am PDT by
Apple today released macOS Sequoia 15.4, the fourth major update to the macOS Sequoia operating system that launched in September. macOS Sequoia 15.4 comes two months after the launch of macOS Sequoia 15.3. Mac users can download the ‌‌macOS Sequoia‌‌ update through the Software Update section of System Settings. It is available for free on all Macs able to run macOS 15. With...

Top Rated Comments

DownUnderDan Avatar
18 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
18 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
18 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
18 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
18 months ago
Always remember: The EU gave us USB-C finally
Score: 27 Votes (Like | Disagree)
cwt2nospam Avatar
18 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)