The European Union is to appeal against a court decision which found in favor of Apple and Ireland over a $14.4 billion tax payment. The judgement in July 2020 was made by the EU’s second-hightest court, and the appeal is expected to be heard in the European Court of Justice.
The case concerns the allegation that the Irish government allowed Apple an unfair tax arrangement. Originally, the European Commission ordered Apple to pay $14.4 billion in back taxes, which it has. The money, however, has been held in escrow while appeals have continued.
In the July appeal, the General Court in Luxembourg concluded that the EC “did not succeed in showing to the requisite legal standard,” that Apple had unfairly benefited from Ireland’s taxation laws.
Now, according to the Financial Times, the EC intends to argue that the court set the bar for requisite standards “unreasonably high.” As well as for this case with Apple, the EU is reportedly concerned about how the decision will hamper its future legal work.
“This case is very important because it will set a precedent for cases we want to fight going forward,” an EU official told the Financial Times.
Friday September 25 is the final day that the EU remains eligible to file for an appeal. It is believed that Margrethe Vestager, executive vice-president in charge of competition policy, has been lobbying within the EU to keep the case going.
Vestager is leading the EU’s drive to create new tax laws governing major technology companies, including Apple.