Tim CookSource: Apple

What you need to know

  • An EU court will rule on Apple's Ireland tax case tomorrow.
  • Reports suggest the Irish government is braced for a 'lose-lose' scenario.
  • The massive potential tax payout to the government would likely be overshadowed by the long term impact on investment in the country.

A report suggests the Irish government is bracing itself for a "lose-lose" outcome when the GCEU issues its judgment on the Apple tax case in the country tomorrow.

According to Independent.ie:

The Government is bracing itself for a potential "lose-lose" outcome to the €13bn Apple tax case ruling due on Wednesday.

The EU's Court of Justice will give its verdict on an appeal launched by the tech giant and Ireland.

They are seeking to overturn an EU Commission decision in 2016 that Apple got preferential treatment from Ireland and owed €13bn in back taxes.

You might think a $14.5 billion tax payment to a government would be considered a fairly sizeable win, but the situation is much more complicated, as evidenced by the fact that Ireland, as well as Apple, have appealed the ruling stating this should be paid. The report firstly notes that other EU countries might try and swipe their own share of the payment, as it relates to Apple's activity in many of their territories.

Secondly, the short-term gain is likely to be overshadowed by the jeopardizing "the future of lucrative multinational investment and job creation in Ireland." If the ruling comes down in favor of paying the sum, it could signal to other prospective companies that they are safer (or rather, better off) investing their money and infrastructure elsewhere. According to the report, officials expect that whatever the outcome, the case will be appealed to the EU Court of Justice, meaning the saga is nowhere near over.