Apple's €13 Billion Tax Dispute: EU Tribunal Adviser Urges Review for Legal Clarity

In a potential setback for Apple, an adviser to Europe's top court suggested that an EU tribunal made legal errors in ruling in favor of Apple over a €13 billion tax order. The case, part of EU antitrust chief Margrethe Vestager's crackdown on deals between multinationals and EU countries seen as unfair state aid, revolves around the European Commission's 2016 decision.

The European Commission argued that Apple benefited from two Irish tax rulings for over two decades, artificially reducing its tax burden to as low as 0.005% in 2014. The General Court, in 2020, upheld Apple's challenge, stating that regulators had not met the legal standard to prove an unfair advantage.

However, advocate General Giovanni Pitruzzella at the EU Court of Justice disagreed, asserting that the General Court made legal errors and failed to assess methodological errors affecting the tax rulings. He recommended setting aside the General Court's ruling and referring the case back for a new assessment.

While the CJEU will make the final ruling in the coming months, about four in five recommendations from advocate generals are typically followed. Ireland maintained its position, stating it provided no state aid to Apple, emphasizing that the opinion doesn't form part of the CJEU judgment.

Apple and Dublin appealed against the tax order, with Apple depositing the full amount in an escrow account. The Irish government anticipates that even if it retains the money, other EU member states might claim a share of the back taxes.

Apple expressed gratitude to the court, reiterating that the General Court's ruling confirmed that Apple received no selective advantage or state aid. Margrethe Vestager, known for her tax crackdown, has faced mixed outcomes in court, with both victories and setbacks. The CJEU's final ruling will provide clarity on the future of this high-stakes tax case.