Apple will battle EU in court over $14 billion tax bill

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Apple France tax
Apple has clashed with a number of European countries over tax avoidance.
Photo: Cult of Mac

Apple will challenge the European Union in court next month over the 13 billion euro ($14.4 billion) Apple was ordered to pay in 2016.

The appeal is due to take place on September 17 and 18 at Europe’s General Court.

The EU handed Apple its giant tax bill in August 2016. It claimed that the company took advantage of illegal state aid that allowed it to route profits through Ireland. The investigation alleged that Apple paid the equivalent of as little as 0.005 percent on all European profits in 2014.

Apple paid the money that it “owes.” This was paid into an escrow fund, where it will be stored until the case reaches its conclusion. (The fund actually lost money last year, bringing its total value down by $18 million.)

Apple has always argued that it pays every cent that it owes. However, the EU obviously disagrees — which is where the whole court battle comes in.

We’ll keep you posted.

Source: Bloomberg