EU Orders Apple to Repay €13 Billion in Back Taxes
The European Court of Justice (ECJ) has ruled that Apple must repay €13 billion ($14 billion) in back taxes to Ireland, concluding an eight-year legal battle. This decision upholds the European Commission’s 2016 finding that Ireland had granted Apple unlawful tax advantages.
Ireland’s government has consistently opposed the repayment, arguing against the Commission’s initial accusation of providing illegal tax benefits to the tech giant. However, the ECJ’s final judgment states, “Ireland granted Apple unlawful aid which Ireland is required to recover.”
This ruling comes just a day after Apple unveiled its new iPhone 16 lineup.
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The case focuses on tax arrangements for two Apple subsidiaries based in Ireland from 1991 to 2014. These arrangements were deemed illegal as they provided advantages unavailable to other companies. The Commission’s original decision was part of a broader effort to address tax avoidance by multinational corporations.
In 2020, the ECJ’s lower court overturned the ruling following an appeal by Ireland. However, the higher court has now set aside that verdict, citing legal errors.
This final decision means Ireland must now collect the unpaid taxes from Apple, despite years of legal efforts to avoid doing so.
As of now, Apple has not commented on the ruling.
