The tax case against Apple was part of EU antitrust chief Margrethe Vestager’s crackdown on sweetheart deals between multinationals and EU countries.
The European Commission in its 2016 decision found that Apple had benefited from two Irish tax rulings for more than two decades, which artificially reduced its tax burden to as low as 0.005% in 2014.
Apple successfully challenged the decision in the lower General Court in 2020, but an adviser to the EU Court of Justice (CJEU) has now said that the lower court made a series of legal errors and should review the case again.
The CJEU, which will rule in the coming months, usually follows four out of five of these recommendations.
Key Points:
- The EU Court of Justice (CJEU) adviser has recommended that judges uphold the EU’s $14 billion tax order against Apple.
- The tax case against Apple was part of EU antitrust chief Margrethe Vestager’s crackdown on sweetheart deals between multinationals and EU countries.
- The European Commission in its 2016 decision found that Apple had benefited from two Irish tax rulings for more than two decades, which artificially reduced its tax burden to as low as 0.005% in 2014.
- Apple successfully challenged the decision in the lower General Court in 2020, but the CJEU adviser has now said that the lower court made a series of legal errors and should review the case again.
- The CJEU, which will rule in the coming months, usually follows four out of five of these recommendations.
Additional Information:
- The case is C-465/20 P Commission v Ireland and Others.
- The CJEU is expected to rule in the coming months.
- If the CJEU upholds the adviser’s recommendation, Apple could be forced to pay the €13 billion tax bill, plus interest.