Apple AAPL shares slipped lower in early Thursday trading after Europe's top court ruled that officials should review a potential $14 billion tax bill levied against the tech giant after it was tossed by judges from a lower court in 2020.
Giovanni Pitruzzella, Advocate General for the European Union's Court of Justice, said the Court should vacate the 2020 ruling, made by a lower court, noting a "series of errors in law" and a flawed overall process.
Pitruzzella, whose opinion to the Court of Justice is non-binding but its more often than not adopted by panel, said the Apple tax case should be reassessed. The Court of Justice will issue a formal ruling on the case early next year.
The dispute centers around $14 billion in tax breaks granted to Apple by the Republic of Ireland as part of its broader investment in the country, which, unlike the United Kingdom, is a member of the European Union.
Europe's General Court ruled in July of 2020 that the EU Commission, as well as Competition Commissioner Margrethe Vestager, "did not succeed in showing to the requisite legal standard that there was an advantage (in Apple's tax arrangement with the Republic of Ireland) that would have violated EU rules."
The Irish government has always denied that it reached an unfair agreement on tax payments with Apple, and in fact lobbied against the $15 billion payment since the Commission made its first order more than four years ago.
Apple, for its part, accused the EU of 'retroactively" changing the rules with respect to calculating taxes on profits, arguing the payments should be made in the United States, not in Europe.
Apple shares were marked 0.15% lower in pre-market trading to indicate an opening bell price of $182.62 each.
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