From WSJ.com’s “Apple Wins Major Tax Battle Against EU” ($) posted early Wednesday:
Apple Inc. won a major battle with the European Union, when the bloc’s second-highest court on Wednesday sided with the U.S. company over a €13 billion ($14.8 billion) tax bill that EU antitrust officials had said the company owed to Ireland.
The case stems from a 2016 decision by the European Commission, the bloc’s top antitrust enforcer, which said that Ireland must recoup €13 billion in tax breaks from between 2003 and 2014, money the commission said constituted an illegal subsidy under the bloc’s strict state-aid rules.
But in its judgment on Wednesday, the General Court said it annulled the commission’s decision because it had failed to meet the legal standards in showing that Apple was granted an illegal subsidy.
My take: More on the decision later. Meanwhile, Apple could be testing $400 again today.
See also: Should the New York Times give back its Apple Pulitzer?
I truly hope Apple fights back the inevitable EU appeal to the Supreme Court equivalent and end this particular issue. The looming EU digital tax is also, IMO, another similar tax and money grab against successful multinational American companies to prop up the EU because it is aimed solely at the largest and most successful of those companies.
“She probably did irreparable damage to herself now.“
I’m skeptical. If anything, fighting this hopeless fight proves her bonafides to some. Yes, it cost taxpayer resources in this particular instance, although this battle may not be quite over (IMHO she’d be wise to cut her losses, though). But note that she’s won some battles as well, which balances that scale.
Anyway, I’m really happy with the win as my European blood was boiling a little on this one when this came up some years ago. The legal team likely drank some champagne.
“Maybe they would have bought back more stock, but I doubt it.”
You’re right. Apple is still years away from hitting its primary goal of net zero cash, which is defined as having only sufficient cash to balance its debt. Recall that Apple is required to limit its purchases per open session to under 20%, and almost certainly rarely can manage even 10%. The logistics of moving that much cash daily without unduly disruptung the market are enormous.
Besides, no sense being greedy.