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September 10, 2024
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EU Court Orders Apple to Pay €13bn in Back Taxes to Ireland

Europe's top court has ruled that Apple must pay Ireland €13bn in unpaid taxes, ending an eight-year legal battle. The decision, which Apple disagrees with, marks a significant victory for the European Commission in its efforts to prevent large companies from exploiting tax loopholes
EU Court Orders Apple to Pay €13bn in Back Taxes to Ireland
Laurenz Heymann - Unsplash

The European Court of Justice (ECJ) has ordered Apple to pay Ireland €13bn (£11bn; $14bn) in unpaid taxes, concluding an eight-year dispute. The ruling upholds the European Commission's 2016 decision that Ireland granted Apple unlawful tax advantages from 1991 to 2014.

Apple expressed disappointment with the decision, stating that the case was about which government should receive the tax payments, not the amount paid. The company argued that its income was already subject to taxes in the US and accused the European Commission of retroactively changing the rules.

Ireland, which has one of the lowest corporate tax rates in the EU, had previously appealed against the Commission's decision, arguing that the tax arrangements were necessary to make the country attractive to large companies. Despite potentially receiving a substantial windfall, the Irish government had resisted the payment, prioritizing its reputation as a business-friendly jurisdiction.

The ruling is seen as a significant victory for the European Commission in its efforts to prevent large companies from exploiting tax loopholes. EU antitrust chief Margrethe Vestager praised the judgment, calling it "a huge win for European citizens and tax justice."

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