Is Apple's EU Tax Fight More Than Bruising?

On Thursday, the former three-term governor of Michigan was a guest on CNBC's "Squawk Box" to discuss the massive $14.5 billion tax bill the European Union is forcing Apple Inc. AAPL to pay to the Irish government.

Related Link: Here's Why It's OK To Be Confused By The European Union's Tax Ruling Against Apple

The European Union argues that Ireland has given illegal state aid to Apple as part of a "sweetheart deal." Apple and Ireland both deny they have done any wrongdoing and pledged to fight the overreaching arm of the EU into a country's individual affairs.

"The EU is overriding Ireland's policies and that's why Ireland is fighting this," he said.

Engler and his organization wrote an open letter to the leaders of 28 European Union member states on September 16.

"The precedent set by this decision, if upheld, could increase uncertainty significantly with a consequent adverse effect on foreign investment in Europe, making this decision a grievous self-inflicted wound for the European Union (EU) and its citizens," the letter argued.

According to Engler, Apple has been obeying Ireland's tax laws over the years, so the BRT is warning politicians in Europe that their actions is creating uncertainty. As such, he is worried that the EU could expand its campaign against other companies that it believes are similarly taking advantage of a "sweetheart deal."

Related Link: Ireland Agrees To Appeal Apple Tax Ruling

Engler was then asked if any members of his organization were putting planned investments in Ireland on hold for the time being. He answered that, thus far, no executives confirmed any hold on plans, but the EU's tax bill is the kind of activity that "alarms them."

Engler added that the last thing companies should have to deal with in a slow growth environment is uncertainty surrounding taxation issues.

"The European decision is far reaching," he concluded. "That's why we wrote the heads of the countries and said look, you really need to pay attention to what these EU bureaucrats are doing because they are going right at your sovereignty, your decisions and your tax structure in your respective nations."

Full ratings data available on Benzinga Pro.