Updated from 10:22 a.m. EDT

NEW YORK (TheStreet) -- Shares of Apple (AAPL) - Get Report were down in early-afternoon trading on Tuesday as the European Commission ruled that the Cupertino, CA iPhone maker must pay Ireland about $14.5 billion in back taxes, claiming that Ireland granted the company illegal tax benefits that enabled it to pay "substantially less tax than other businesses over many years."

Apple has issued a statement saying it pays all the taxes it owes, and will appeal the decision. 

But the ruling is unlikely to be a major overhang on the stock, TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.

"We're going to talk about the iPhone 7 in a few days, and people are going to say, well what about the EU ruling?" Cramer noted. "You'll say, that's under appeal and the Irish are fighting it - you know how screwed up the EU is."

"We could just fast forward the tape, and I can say that again three days from now," he added. 

Apple will host a September 7 event during which it is expected to unveil new iPhone models and updated versions of the Apple Watch.

Cramer believes that the EU ruling is largely a question of sovereignty. 

The EU has been trying to become its own nation after Britain's June decision to leave the union, Cramer mentioned. 

"In that sense, you can't have a separate nation within a nation," he stated. "But Ireland would argue that it has the right to be able to negotiate these things without having to go to the EU."

He added in the above video that he believes the idea of some sovereignty in Ireland makes sense, but the EU is acting as if it is the federal government and member countries are states. 

Going forward, of course Ireland should operate through the EU, but it shouldn't be retroactive, Cramer contended.

(Apple is a core holding of Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trialhere.)

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.

Image placeholder title