Report Says U.S. Government Filed to Intervene in Apple's Tax Appeal in Europe

EU apple taxThe U.S. government has filed an application with the General Court of the European Union to intervene in an ongoing tax-related case between Apple and the European Commission, according to Reuters.

"I can confirm the United States filed an application with the European Union General Court to intervene in the case involving the retroactive application of state aid rules to Apple," said the source, who declined to be named because of the sensitivity of the matter.

The report did not specify when the application was submitted, so it's unclear if it occurred under the Barack Obama or Donald Trump administrations.

Last August, following a three-year investigation, the European Commission found Apple received illegal state aid from Ireland. The iPhone maker allegedly paid between 0.005 percent and 1 percent in taxes in Ireland between 2003 and 2014, compared to the the country's headline 12.5 percent corporate tax rate.

The European Commission ordered Apple to pay up to 13 billion euros to Ireland in back taxes as a result of its decision.

Apple has not paid the amount and appealed the case in December, arguing that the European Commission made "fundamental errors" by failing to recognize that its "profit-driving activities," in particular the development and commercialization of intellectual property, were controlled and managed in the United States.

Ireland has also appealed the case, denying that it gave any favourable tax treatment to Apple. In a statement, the Irish government said the full amount of tax in the case was paid by Apple, adding that no state aid was provided. "Ireland does not do deals with taxpayers," the country said.

Apple's top lawyer Bruce Sewell earlier said the company is a "convenient target" because it "generates lots of headlines," allowing European commissioner Margrethe Vestager to become "Dane of the year" for 2016.

The report, citing a source with knowledge of the matter, said the General Court is expected to hear the case in late 2018.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Popular Stories

sam sung auction

Former Apple Employee Sam Sung Changed His Name to Avoid Attention

Wednesday October 22, 2025 4:44 pm PDT by
Back in 2012, an Apple retail employee named Sam Sung went viral because his name is similar to Samsung, one of Apple's main competitors. In a recent interview with Business Insider, he detailed that period in his life, how Apple responded, and he explained why he ultimately changed his name. Someone posted an image of Sung's Apple business card on Reddit in 2012, and it spread rapidly....
iOS 26

iOS 26.1 Coming Soon With These 8 New Features for Your iPhone

Wednesday October 22, 2025 6:15 am PDT by
The upcoming iOS 26.1 update includes a handful of new features and changes for iPhones, including a toggle for changing the appearance of the Liquid Glass design, "slide to stop" for alarms in the Clock app, and more. iOS 26.1 is currently in beta testing. The update will likely be released in the first half of November, and it is compatible with the iPhone 11 series and newer, but some...
iOS 26 Battery Glass Feature

iOS 26.1 Beta Liquid Glass Battery Drain Test: Tinted vs Clear Mode

Friday October 24, 2025 2:30 pm PDT by
In the fourth iOS 26.1 beta, Apple added a "Tinted" option that reduces the translucency of Liquid Glass for those who prefer a more opaque look. I saw some comments wondering whether the setting might preserve battery life, so I thought I'd do some testing. Test Settings I did four separate tests using the iPhone 17 Pro Max, and I kept the parameters as similar as possible. Here are the...
All Screen iPhone 2027 Feature 1

Report: Apple to Skip 'iPhone 19' Name for 'iPhone 20'

Thursday October 23, 2025 4:28 am PDT by
Apple's new iPhone lineup launched in the fall of 2027 will be called the "iPhone 20" models, rather than the "iPhone 19," according to research firm Omdia. Speaking at a conference in Seoul (via ETNews), Omdia Chief Researcher Heo Moo-yeol corroborated rumors that Apple plans to move the launch of its standard iPhone to the first half of the year and provided some additional clarity about...
trump white house ballroom

Apple Donating to Trump's $350M White House Ballroom Project

Thursday October 23, 2025 3:55 pm PDT by
Apple is one of several tech companies that will contribute to the construction of U.S. President Donald Trump's 90,000-square-foot ballroom, reports CNN. Construction began on the ballroom this week, and the White House's east wing was torn down. Trump claims that the ballroom will cost $350 million, and that it will be privately funded through donations. The cost has already increased $150 ...
apple wallet drivers license feature iPhone 15 pro

iPhone Driver's License Feature in Apple Wallet App Launches in Another U.S. State

Thursday October 23, 2025 7:44 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Starting today, the feature is available to residents of West Virginia. To set it up, open the Wallet app and tap on the plus sign in...
cadillac lyric infotainment

GM to Remove CarPlay from All Future Vehicles, Including Gas Cars [Updated]

Wednesday October 22, 2025 11:34 am PDT by
General Motors began phasing out support for CarPlay in its electric vehicles back in 2023, leading to complaints from iPhone users, but the company has no plans to back down. In fact, GM is going further and plans to remove CarPlay from all future gas vehicles, too. In an interview with The Verge, GM CEO Mary Barra said that the company opted to prioritize its platform for EVs, but the...
iPhone Air

Report: 'Virtually No Demand' for iPhone Air

Wednesday October 22, 2025 3:22 am PDT by
Apple is "drastically" cutting production of the iPhone Air and shifting focus toward the iPhone 17 and iPhone 17 Pro models, Nikkei Asia reports. The business publication claims to have learned of a major cut to iPhone Air production motivated by weaker-than-expected consumer interest, nearly to "end of production levels." Despite early reports of the iPhone Air selling out within hours of...
maxresdefault

Apple's iPhone Air Experiment Fails as Supply Chain Cuts Production by 80%

Wednesday October 22, 2025 10:48 am PDT by
iPhone Air demand failed to meet Apple's expectations and the company's supply chain is scaling back shipments and production, reports Apple analyst Ming-Chi Kuo. Subscribe to the MacRumors YouTube channel for more videos. Suppliers are expected to reduce capacity by more than 80 percent between now and the first quarter of 2026, and some components with longer lead times will be discontinued ...

Top Rated Comments

VulchR Avatar
109 months ago
Not sure what the US government can say to help Apple. The arrangement Apple has with Ireland is ludicrous, and it is little wonder the EU are taking action.
Score: 32 Votes (Like | Disagree)
robeddie Avatar
109 months ago
Apple found a loophole. Close the loophole, raise the taxes on them going forward, but don't penalize them for something that was previously agreed to by the Irish government.
If the Ireland violated the EU by making the agreement with Apple, they should be penalized.
Score: 20 Votes (Like | Disagree)
H2SO4 Avatar
109 months ago
As long as the same arrangement was available to all companies it is nothing to do with the EU. They don't get to set countries tax rates.
Yes it does. You are in the EU, you agree to abide by their rules. Don't like it, get out.
Score: 18 Votes (Like | Disagree)
LordVic Avatar
109 months ago
Just want to clarify for my own head:

Ireland claims they have the right to negotiate taxes Independantly of the EU with international organizations. Even despite their own corporate flat tax rate.

Apple is claiming that the revenues that Apple claims in Ireland aren't taxable in Ireland because the Revenues are only earned because of invention / R&D that is created in the US.

Apple claims on their US tax forms most of their money is earned internationally, and they don't need to pay taxes on their full profits in the US.


Am I missing something? I know creative accounting is the name of the game, But how does Apple believe that they can claim profits / revenues in areas, not paying taxes in those areas and then claiming it's fine because they run businesses elsewhere.
[doublepost=1499192769][/doublepost]
No. That misconception is part of the problem. Apple pays more taxes than any U.S. company based on their earnings. Should they pay even more simply because they're the most successful?
The question is, how much of their earnings based on percentage is Apple paying?

Taxation needs to be progressive in nature to be able to afford all the industry and infrastructure we all require. Companies who make a lot less than Apple, who cannot afford the international manipulations of tax load that major corporations can, are the ones who inevitably end up paying a higher percentage of their own profits to taxes than the larger companies

While Apple might be the #1 payer of tax, if they're paying at a rate that is far lower than companies who make less than them, this is the problem

In addition, Apple likes to report all their profits / earnings in their US balance sheets, but only pay taxes on money earned in the US. While I agree that you should only be paying taxes on Profits in a region, if you're going to claim all your international profits are your US corporate profits, than thats what you pay tax on.

Apple should be forced to break their books up by nationality that they participate in, and should be forced to file taxation on a per country basis.
Score: 16 Votes (Like | Disagree)
unlinked Avatar
109 months ago
The arrangement Apple has with Ireland is ludicrous, and it is little wonder the EU are taking action.
As long as the same arrangement was available to all companies it is nothing to do with the EU. They don't get to set countries tax rates.
Score: 14 Votes (Like | Disagree)
apolloa Avatar
109 months ago
Isn't it pathetic? Apple goes crying to the US government because it fiddled money, effectively laundering it IMO, and the EU takes issue with 'Ireland' on it, yet Apple then tries to argue no..

They really should shut up and pay Ireland, it was a very clear breach of law.
Score: 11 Votes (Like | Disagree)