In a major legal blow to Apple, Europe’s top court has ordered the tech giant to pay $14 billion in back taxes to Ireland. The European Court of Justice (ECJ) issued its ruling today, concluding a decade-long court battle involving Apple and the Irish government. The case centers on the European Commission’s 2016 decision to investigate Apple’s tax arrangements in Ireland, where the company’s European headquarters are located.
The dispute dates back to claims that Apple received unfair tax advantages through its arrangements with Ireland, allowing the company to pay significantly less tax than other businesses. The European Commission ruled that these tax benefits violated EU state aid rules and ordered Apple to pay billions in unpaid taxes to the Irish government. However, both Apple and Ireland appealed the decision, arguing that the tax arrangements were legal under Irish law.
Today’s ruling by the ECJ reaffirms the European Commission’s stance, stating that Apple must repay the back taxes. The court’s decision represents a landmark in the EU’s ongoing efforts to crack down on tax avoidance by multinational corporations and to promote fair competition within the bloc.
Apple has long argued that it followed all legal tax protocols and has maintained that it pays the taxes it owes in every country where it operates. In a statement following the ruling, the company expressed disappointment, stating that it would review the decision and consider further legal options.
The ruling comes just a day after Apple unveiled its new iPhone and Apple Watch products, casting a shadow over the company’s latest innovations. While the legal battle continues, the case has reignited debate over the tax practices of global corporations and the efforts of regulators to close loopholes that allow companies to shift profits to low-tax jurisdictions.
Irish officials, despite being named as the beneficiary of the tax payment, have opposed the European Commission’s ruling, citing concerns about its impact on the country’s ability to attract foreign investment. Ireland’s corporate tax rate has been a key factor in luring major tech companies like Apple, Google, and Facebook to set up European headquarters there.
The case is expected to have significant implications for other multinational corporations operating within the EU and could lead to broader reforms in international tax policy.
