Apple readies for renewed ECJ battle as advocate general throws out 2020 tax ruling
The dispute between Apple and the Government of Ireland with the European Commission over €13 billion in unpaid taxes is set to continue folowing a recommendation by European Court of Justice (ECJ) advocate general Giovanni Pitruzella that a decision favouring the iPhone maker be set aside.
Pitruzella said in 2020 a lower court erred in law when it said Apple maker did not in fact owe back taxes to the State – as argued by then Competition Commissioner Margrethe Vestager. While not binding, the opinions of advocate generals are considered influential in final judgements by the ECJ.
The case against Apple and the Government held that a tax arrangement minimising the US company’s liability from 2004-2014 amounted to illegal state aid under EU law.
The dispute is centred on how Apple was allowed to structure its corporate affairs in Ireland to minimise its tax burden – a structure that was not offered to other multinationals.
Apple placed €14.3 billion covering liability, interest and penalties in an escrow account in 2018, the actual value of which has fluctuated owing to interest rates and requests to use some of the money to pay other taxes.
Minister for Finance Michael McGrath said: “It is important to bear in mind that this opinion does not form part of the Court of Justice of the European Union judgment but is considered by the court when arriving at its final ruling.
“My department and the State’s legal team will consider the full opinion of the advocate general in detail.
“It has always been, and remains, Ireland’s position that that the correct amount of Irish tax was paid and that Ireland provided no state aid to Apple. We now await the judgment of the Court of Justice of the European Union on this matter.”
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