The potential setback for Apple comes as the adviser to Europe's top court found that an EU tribunal committed legal errors when it ruled in favour of the American technology company
Apple faces potential setback in $14bn tax order case. (Credit: Tdorante10/Wikimedia Commons)
Advocate General Giovanni Pitruzzella at the Court of Justice of the European Union (CJEU) has recommended a reassessment of the $14bn tax order against Apple.
The potential setback for Apple comes as the adviser to Europe’s top court found that an EU tribunal committed legal errors when it ruled in favour of the American technology company.
The Advocate General alleged that the general court failed to correctly evaluate the nature and consequences of certain methodological mistakes that, according to the European Commission (EC) decision, vitiated the tax rulings.
In 2016, the EC stated that Apple profited from two Irish tax rulings for over two decades that artificially lowered its tax burden to as low as 0.005% in 2014.
The EU’s general court upheld Apple’s challenge in 2020, ruling that regulators failed to meet the legal standard to show that the technology major had benefitted unfairly.
An Apple spokesperson has been quoted by Reuters as saying: “We thank the court for its time and ongoing consideration in this case. The General Court’s ruling was very clear that Apple received no selective advantage and no state aid, and we believe that should be upheld.”
Separately, Apple has agreed to pay up to $25m in backpay and civil penalties to the US Justice Department to resolve the employment discrimination allegations based on citizenship status.
The settlement will address the department’s finding that Apple breached the Immigration and Nationality act’s anti-discrimination requirements during recruitment for positions falling under the permanent labour certification programme.
The department started its investigation into the technology major in February 2019.
Justice Department’s Civil Rights Division Assistant Attorney General Kristen Clarke said: “Creating unlawful barriers that make it harder for someone to seek a job because of their citizenship status will not be tolerated.
“This resolution reflects the Civil Rights Division’s commitment to ending illegal discriminatory employment practices.”