Apple experiences a setback in their tax litigation fight with the European Union

In the most recent development in a protracted legal battle inside the European Union, Apple may find itself responsible for billions of euros in overdue taxes to Ireland after all, according to a legal opinion released on Thursday by an advisor to the court of the union.

Advocate General Giovanni Pitruzzella said in his opinion to the European Court of Justice that a lower court’s ruling that the US internet giant is exempt from paying back the 13.9 billion euros in taxes “should be set aside.”

When the lawsuit was first brought in 2016, Apple CEO Tim Cook expressed his indignation, calling it “total political crap.” The European Commissioner Margrethe Vestager led the drive to remove special tax breaks and take action against large US internet corporations. At the time, US President Donald Trump called Vestager the “tax lady” who “really hates the US.”

The European Union’s General Court disapproved of the European Commission’s (the bloc’s executive body) 2020 decision, accusing Apple of negotiating an unlawful tax arrangement with Irish authorities in order to pay astronomically low rates.

In order to “set aside the judgment and refer the case back to the General Court for a new decision on the merits,” Pitruzzella recommended the European Court of Justice.

He responded, stating that the General Court “committed a series of errors in law” and that it must “carry out a new assessment.”

Although not legally enforceable, the court often abides with the ECJ’s rulings. It is anticipated that the Court of Justice would provide its legally binding ruling in the next year.

Apple released a prepared statement saying, “We thank the court for its time and ongoing consideration in this case.” “We think that should be upheld; the General Court’s ruling was very clear that Apple received no State aid and no selective advantage.”

Refusing to comment was the European Commission. Since then, the tech crackdown has grown to encompass antitrust inquiries against Apple’s App Store and payment platform as well as more stringent oversight under new digital regulations meant to level the playing field.