Apple faces a new setback, and may have to pay taxes worth 13 billion euros ($14 billion) to Ireland
In a recent development, Apple Inc. finds itself in a precarious position as it faces the possibility of paying a hefty sum of 13 billion euros ($14 billion) in taxes to Ireland. This setback comes after an advisor to the European Union Supreme Court recommended the cancellation of Apple's victory in a previous legal challenge. Giovanni Petruzzella, the Advocate General of the European Court of Justice, has emphasized the need to reconsider the decision due to the presence of numerous legal errors in the previous appeal.
The dispute between Apple and the European Union stems from allegations of illegal state aid provided by Ireland to the tech giant. In 2016, the European Commission ruled that Ireland had granted Apple preferential tax treatment, allowing the company to pay significantly lower taxes than other businesses. The Commission concluded that this constituted illegal state aid, and ordered Apple to pay back the unpaid taxes, amounting to 13 billion euros.
Apple, along with Ireland, appealed against this decision, and in 2020
the General Court of the European Union ruled in favor of the tech giant. The court deemed that the European Commission had failed to prove the existence of illegal state aid. However, the recent advisory opinion by Giovanni Petruzzella has cast doubt on the validity of this victory.
Petruzzella's advisory opinion highlights the presence of legal errors in the previous appeal, necessitating a reconsideration of the decision. While the opinion is not binding, it holds significant weight and is often followed by the European Court of Justice. If the court decides to overturn the previous ruling, Apple will be required to pay the 13 billion euros in taxes to Ireland.
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