EU Commission Appeals Apple Ruling Over $14.9 Billion Tax Case in Ireland

The long-standing conflict between Apple and the European Commission over unpaid taxes in Ireland received the expected continuation. The European Commission filed an appeal with the European Court of Justice, the supreme court of the European Union, against the July 2016 ruling, which overturned the decision obliging Apple to pay additional $14,9 billion taxes in Ireland.

Recall that the dispute between the European Commission, the Irish government, and Apple arose back in 2013 when special tax conditions were proposed for Apple in Ireland. The Cupertino company paid tax at rates ranging from 1% to 0,005% instead of 12,5%.

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Following the investigation, the European Commission concluded that it is an unreasonable advantage for Apple over other market participants who paid taxes at the regular rate. At the same time, the European Commission demanded that the Irish government levy unpaid taxes from Apple in the amount of €13 billion ($14,9 billion). Both Apple and the Irish government opposed it. Apple CEO Tim Cook called the EU decision "total political crap."

Apple filed an appeal against the EU's decision, claiming that the regulator mistakenly taxed its US taxable profits and changed the rules for calculating liabilities. In July, a European court ruled in this dispute, upholding Apple.

On September 25, the European Commission issued an official statement confirming an appeal against the European court's July decision. The EU antitrust chief Margrethe Vestager said that the court "has made a number of errors of law."

An Apple spokesperson said that it will review the commission's appeal, adding that it has always complied with the law in Ireland and other locations where it operates.

"The General Court categorically annulled the Commission's case in July and the facts have not changed since then," the Apple spokesperson said.

Irish Finance Minister Paschal Donohoe told that the appeal was "expected," and that it would likely "take a number of years further before this matter is further determined."

It remains to add that the decision of the Court of Appeal will be final and no longer subject to appeal.