NEW YORK (TheStreet) -- The European Union overstepped its authority by ruling that Apple (AAPL) - Get Free Report must pay $14.5 billion in back taxes to Ireland, former IRS commissioner and current alliantgroup vice chairman Mark Everson said on CNBC's "Squawk on the Street" on Wednesday morning.
"The very idea of the EU and their so-called authority in this area - that is quite tenuous. So there's a host of problems here that really set us quite far backward," he said.
While how much large businesses pay in taxes is an issue, the EU is going about it the wrong way, Everson said.
"I'm troubled by this. I think it's a step backward for going after tax abuses on a couple of levels," he said.
First, using antitrust decisions to try to "force the hand" of taxing authorities is disconcerting, Everson said.
Second, the "retrospective nature" of the ruling is perplexing, he said. If the EU changed its law now and said, "Going forward, this is how it is," then that would make more sense, Everson explained.
The ruling presents a "watershed moment" that will have broader ramifications, Everson noted. Going forward, corporations will be more hesitant when making investments, particularly in Europe.
"This makes Europe much less attractive in certain regards, I would suggest," he said.
A potential positive that could come out of the disagreement is getting Congress to pay attention to the issue.
"The one silver lining here may be there's a consensus that we need to do more to get after American competitiveness on our corporations overseas. This may really get Congress to take a good look at it come the new year," he concluded.
Shares of Apple were higher in early-afternoon trading on Wednesday.
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Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B+.
Apple's strengths such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, increase in stock price during the past year and notable return on equity outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: AAPL
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.