European court orders Apple to pay 13 billion euros in back taxes

Europe’s top court has cracked down on Apple as the company has been ordered to pay 13 billion euros (roughly $14.4 billion) in back taxes to Ireland.

This marks the end of the decade-long court battle and was concluded just a day after the iPhone maker had announced its upcoming product line-up.

The European Court of Justice has agreed that Apple had unduly benefited from unfair loopholes in Ireland’s tax regime, meaning the company must now pay back payments.

It was in 2016 when EU antitrust chief Margrethe Vestager claimed that Ireland had granted illegal benefits to the California-based company, suggesting this allowed them to pay less tax than other businesses.

The European Commission had previously launched an investigation into Apple’s tax payments in Ireland two years prior, in 2014.

Vestager describes the judgment as being a “huge win for European citizens and tax justice.”

Today is a huge win for European citizens and tax justice.
 
In its final judgment, @EUCourtPress confirms @EU_Commission 2016 decision: Ireland granted illegal aid to @Apple.
 
Ireland now has to release up to 13 billion euros of unpaid taxes.

— Margrethe Vestager (@vestager) September 10, 2024

Ireland has low tax rates which has helped the country to entice Big Tech companies to set up headquarters there. Apple was one of the first major US-based companies to do so, with the company setting up its European headquarters there in 1980.

Irish Government issues a statement following Apple tax ruling

The Irish Government has issued a public statement that explains their stance: “The Irish position has always been that Ireland does not give preferential tax treatment to any companies or taxpayers.”

“The CJEU has found that the tax paid was insufficient and that a greater amount of taxation was required to be recovered. Ireland will of course respect the findings of the Court regarding the tax due in this case.”

The government also referred to the case as involving an issue that is now only of historical relevance: “the Revenue opinions date back to 1991 and 2007 and are no longer in force; and Ireland has already introduced changes to the law regarding corporate residence rules and the attribution of profits to branches of non-resident companies operating in the State.”

According to TIME, an Apple spokesperson has said: “We are disappointed with today’s decision as previously the general court reviewed the facts and categorically annulled this case…”

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