Apple suffers legal blow in €14.3bn tax dispute with Brussels

(Sharecast News) - A key legal ruling in Apple's favour should be overturned, a senior legal adviser to the European Union's highest court has argued, in the latest development in the US tech giant's long-running €14.3bn tax dispute with Brussels. The European Commission first ruled in 2016 that by allowing Apple to pay a much lower rate of tax than other companies, the Irish government had given it illegal tax breaks.

Apple was ordered to pay €14.3bn in back taxes and interest, but the order was overturned in 2020 by the General Court, the European Union's second highest court.

However, on Thursday the advocate general of the European Court of Justice said the case should be reviewed again.

Giovanni Pitruzzella argued that the General Court had made a "series of errors in law" and that the landmark decision quashing to the order to pay €14.3bn in back taxes and interest to Ireland should be "set aside". A new assessment was now needed, he added.

Although the advocate general's legal opinions are not binding, the court often agrees with them.

An Apple spokesperson said the original ruling was "very clear that Apple received no selective advantage and no state aid. We believe that should be upheld".

Ireland's finance minister, Michael McGrath, said: "It has always been, and remains, Ireland's position that the correct amount of Irish tax was paid and that Ireland provided no state aid to Apple."

Ireland has long kept corporation tax intentionally low, as a way of attracting global companies. It does not want Apple to repay the taxes, arguing that it would deter multinationals from basing themselves in the country.