Apple stood up against the European Union (EU) on Tuesday in court following the bloc's order in 2016 that the American tech giant pays up $14 billion or 13 billion euros in back taxes to the country of Ireland. The two sides reportedly argued during the hearing.
According to CNBC, representatives from the EU, Ireland, and Apple met during the latest hearing and discussions are expected to ensue through Wednesday. However, a final decision has yet to be announced.
Apple's delegation was led by Chief Financial Officer Luca Maestri. The group challenged the 2016 executive order at the General Court but whatever decision the judges' decision will be, it is expected to be appealed at the EU Court of Justice.
The legal battle came three years after EU Competition Commissioner Margrethe Vestager proposed the order for the U.S. tech giant to pay back taxes. Vestager said the iPhone maker received "illegal" tax benefits for the past 20 years.
The company has denied the allegations and the White House has also called out the bloc for intervening with American companies. The U.S. government argued that Apple should only be subject to laws in its home country.
U.S. officials have also been trying to intervene in the legal case but the bloc has denied requests from Washington to take part in the probe spearheaded by Vestager.
During Tuesday's legal proceedings, Apple's lawyer, Daniel Beard, argued that Apple products and intellectual property rights were all developed in the U.S., making the said goods subject to American jurisdiction, Reuters reported.
Regarding the issue that Apple's Irish branches generated a massive chunk of the company's overall profits, Beard noted that the said branches are not "responsible for generating almost all" of the tech behemoth's non-U.S. profits.
Apple also pointed out that it is the world's largest taxpayer as it pays up to 20 billion euros in U.S. taxes. The said amount is equivalent to an average global tax rate of 26 percent.
Ireland seemed to echo Apple's concerns as to its lawyer, Paul Gallagher, questioned the "fundamentally flawed" decision of the Commission. Gallagher threw light at the criticism his country received due to its alleged mismatch with the American tax system.
According to the Irish Times, Ireland had to comply with the Commission's order to collect the amount in question from Apple. The interest on the amount was also collected and placed under escrow.
Five judges will hear the case for two days. Industry experts said a decision may not be in for at least several months.
