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US govt seeks to intervene in Apple's $14-billion EU tax appeal

Though Obama govt criticised the EU decision, Trump admin hasn't said anything in public yet

Reuters  |  Washington 

Photo: Reuters
Photo: Reuters

The US government has sought to intervene in Apple's appeal against the European Union order to pay back up to 13 billion euros ($14.8 billion) in Irish taxes, a source familiar with the matter said on Tuesday.

maker took its case to the Luxembourg-based General Court, Europe's second-highest, in December after the European Commission issued the record tax demand saying the US company won sweetheart tax deals from the Irish government which amounted to illegal subsidies.

The decision was criticised by the administration which said the was helping itself to cash that should have ended up in the United States.

The Trump administration, which has tentatively proposed a tax break on $2.6 trillion in corporate profits being held offshore as part of its tax reform, has not said anything in public about the case.

"I can confirm the United States filed an application with the European Union 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 is expected to hear the case in late 2018, another source with knowledge of the matter said.

has said it was a convenient target for the and that the competition enforcer used an "absurd theory" to come up with a punitive figure.

Amazon and McDonald's are also in the crosshairs over their tax deals with Luxembourg.

Ireland, the Netherlands, Luxembourg, Starbucks, Fiat Chrysler Automobiles and several other that were also ordered to pay back taxes to other countries have similarly challenged their rulings.

First Published: Wed, July 05 2017. 01:53 IST