Apple Faces Potential $14B Tax Bill as EU Court Adviser Cites Legal Flaws in Previous Ruling

Apple Inc AAPL could be liable to a €13 billion ($14 billion) tax bill to Ireland after Advocate General Giovanni Pitruzzella of the European Union's top court challenged the iPhone maker's victory in an earlier ruling under the ground of legal errors.

The EU Court of Justice will likely deliver a final and binding decision on the case soon. Historically, the court follows such advisory opinions in most instances, Bloomberg reports.

Margrethe Vestager, the EU's antitrust chief, caused a stir from Apple's base in Cupertino to the White House with her 2016 focus on Apple's tax deals in Ireland.

Apple and Ireland successfully challenged the EU's ruling in 2020, with the court agreeing that the European Commission's analysis was flawed, marking a significant setback for Vestager.

Responding to Advocate General Giovanni Pitruzzella's recent opinion, Apple defended the lower court's decision, asserting that it did not receive any selective advantage or state aid. 

Ireland's Finance Minister Michael McGrath also maintained that the country had charged the appropriate amount of tax and had not provided state aid to Apple.

Apple held $61.6 billion in cash and equivalents as of September 30.

Price Action: AAPL shares traded lower by 0.13% at $182.65 premarket on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.