EU will appeal against Apple and Ireland's $14.4 billion tax case ruling

The European Union is to appeal against a court decision which found in favor of Apple and Ireland over a $14.4 billion tax payment. The judgement in July 2020 was made by the EU's second-hightest court, and the appeal is expected to be heard in the European Court of Justice.

The case concerns the allegation that the Irish government allowed Apple an unfair tax arrangement. Originally, the European Commission ordered Apple to pay $14.4 billion in back taxes, which it has. The money, however, has been held in escrow while appeals have continued.

In the July appeal, the General Court in Luxembourg concluded that the EC "did not succeed in showing to the requisite legal standard," that Apple had unfairly benefited from Ireland's taxation laws.

Now, according to the Financial Times, the EC intends to argue that the court set the bar for requisite standards "unreasonably high." As well as for this case with Apple, the EU is reportedly concerned about how the decision will hamper its future legal work.

"This case is very important because it will set a precedent for cases we want to fight going forward," an EU official told the Financial Times.

Friday September 25 is the final day that the EU remains eligible to file for an appeal. It is believed that Margrethe Vestager, executive vice-president in charge of competition policy, has been lobbying within the EU to keep the case going.

Vestager is leading the EU's drive to create new tax laws governing major technology companies, including Apple.

12 Comments

prismatics 164 comments · 9 Years

About 4 years ago

I think Marie Vestager has the power to do the decision herself as Vice Executive President of the European Comission so I am wondering what there is to lobby as her view is broadly sympathisied with all over Europe.

It seems to be a power difference between democratically elected governments and corporations, where the exact magnitude of this difference will heavily influence the outcome of this case.

Rick601 19 comments · 6 Years

The problem of socialism is that sooner or
later you run out
of other people’s money (M. Thatcher). So you are always on the hunt to find more.

crowley 10431 comments · 15 Years

Rick601 said:

The problem of socialism is that sooner or
later you run out
of other people’s money (M. Thatcher). So you are always on the hunt to find more.

Would that be the M Thatcher whose Tory government never once posted a budget surplus during her tenure and sold off national assets at bargain basement prices?

I wouldn't trust her opinions on any matter, let alone financial ones.

gatorguy 24609 comments · 13 Years

The Apple tax case is not the first BTW. Vestager previously brought quite similar cases against Starbucks and Fiat and won both.

razorpit 1793 comments · 17 Years

crowley said:

Rick601 said:

The problem of socialism is that sooner or
later you run out
of other people’s money (M. Thatcher). So you are always on the hunt to find more.

Would that be the M Thatcher whose Tory government never once posted a budget surplus during her tenure and sold off national assets at bargain basement prices?

I wouldn't trust her opinions on any matter, let alone financial ones.

Well to be fair it is the government. The only product they make is more government. Don’t know if it’s a good thing their “income” exceeds their expenditures. Any money coming in to government is going to be spent somewhere.