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The Financial Times: Apple’s €14.3 billion tax dispute with the EU has encountered a new development. The European Court of Justice’s advocate-general has recommended overturning a previous ruling that favored Apple, arguing it contained legal errors and failed to properly assess the case. This advice is influential but not binding on the EU’s highest court, which is expected to issue a ruling next year.
The issue originates from a 2016 finding by the EU that Apple’s tax arrangements in Ireland unfairly reduced its tax rate, giving it an edge over competitors and violating state-aid rules. Although Ireland collected the disputed amount from Apple, which remains in escrow pending legal proceedings, both Ireland and Apple maintain that the proper taxes were paid and no state aid was provided.
This case highlights Ireland’s low corporate tax rate, which has been a cornerstone of its economic policy and has attracted major tech and pharmaceutical firms. However, Ireland is poised to raise its corporate tax rate to meet OECD guidelines, amid falling tax receipts in recent months. The outcome of the case could lead to further claims on the funds by other EU states and the US. This dispute is part of the EU’s broader effort to address preferential tax deals within its member states.
The entire article can be read at the link https://www.ft.com/content/db2e63a1-9972-444f-9ae3-70bec32b020b
