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Apple has been ordered by the European Court of Justice (ECJ) to pay Ireland €13 billion ($14 billion) accumulated in unpaid taxes, marking the end of an eight-year legal dispute. The announced decision upholds the European Commission's 2016 finding that Ireland had granted Apple illegal tax advantages from 1991 to 2014.
The case centered on tax arrangements for two Apple subsidiaries based in Ireland. The ECJ determined that these arrangements were everything but lawful, as they were unavailable to other existing or competing companies. "Ireland granted Apple unlawful aid which Ireland is required to recover," the court stated, marking its final judgment on the matter.
The EU antitrust chief Margrethe Vestager, hailed the verdict referring to it as "a huge win for European citizens and tax justice." This single ruling represents a significant victory for the European Commission in its continued efforts to curb tax avoidance by multinational corporations.
Apple expressed disappointment with the decision, arguing that the case "has never been about how much tax we pay, but which government we are required to pay it to." The tech giant accused the European Commission of "trying to retroactively change the rules," insisting it has always paid its fair share of taxes.
Interestingly, the Irish government had fought against receiving the back taxes, viewing lower corporate tax rates as crucial for attracting large companies. Ireland serves as Apple's base for operations in Europe, the Middle East, and Africa. The government stated it would respect the ruling, describing the issue as "now of historical relevance only."
This verdict comes on the heels of Apple's iPhone 16 release, potentially overshadowing the tech giant's product launch. It also coincides with another major ECJ ruling against Google, which must pay a €2.4 billion fine for abusing its market dominance in shopping comparison services.
Tove Maria Ryding from the European Network on Debt and Development openly welcomed the decision but also emphasized that "our tax problem is more than just one rotten apple." She called for "a fundamental reform that can give us a tax system that is fair, effective, transparent and predictable.
