The European Court of Justice (ECJ) has mandated that Apple repay €13 billion (£11 billion; $14 billion) in unpaid taxes to Ireland, confirming the European Commission’s 2016 ruling that Ireland provided Apple with illegal tax advantages.
The court stated, “The Court of Justice gives final judgment in the matter and confirms the European Commission’s 2016 decision: Ireland granted Apple unlawful aid which Ireland is required to recover.”
This decision comes shortly after Apple launched its new iPhone 16 range.
In response, Apple emphasized, “This case has never been about how much tax we pay, but which government we are required to pay it to. We always pay all the taxes we owe wherever we operate and there has never been a special deal.”
The company reiterated its commitment to being a significant global taxpayer and economic contributor.
The ECJ’s ruling upholds the European Commission’s 2016 decision, which found that Ireland’s tax arrangements for Apple from 1991 to 2014 were illegal because they provided an unfair advantage not available to other companies.
Apple’s previous appeals and a 2020 lower court decision that favored Ireland have been overturned. The higher court deemed the lower court’s ruling contained legal errors.
Apple expressed disappointment, stating, “The European Commission is trying to retroactively change the rules and ignore that, as required by international tax law, our income was already subject to taxes in the US.”
The company had previously argued that the ruling should be annulled.
In related news, the ECJ also upheld a €2.4 billion (£2 billion) fine against Google for abusing its market dominance with its shopping comparison service.
This fine, imposed by the European Commission in 2017, was previously challenged by Google and marks a significant part of ongoing legal battles for the tech giant.
Source-BBC
