EU orders Apple to pay €13 billion

The EU has ordered Apple to pay €13 billion (£11bn) to Ireland following a ten-year legal battle with the European Union over “sweetheart” tax advantages.

The Court of Justice of the European Union (CJEU) declared on Tuesday (10 September) that Apple had unfairly benefited from years of state aid that was illegally provided by the Irish government in the form of tax support.

Following a two-year probe, Europe’s competition watchdog Margrethe Vestager had ordered the business to pay Ireland the fine in 2016. But in 2020, after Apple filed an appeal, a lower EU court reversed the decision.

Since the CJEU is the highest court in the EU, the ruling cannot be challenged, and the money must now be given to the Irish government. Since 2018, they have been kept in an escrow account frozen.

The ruling supports Ms. Vestager’s tax onslaught on US multinational corporations, although she was previously unsuccessful in the CJEU over an unrelated matter involving Amazon.

“On appeal, the Court of Justice sets aside the judgment of the General Court and gives final judgment in the matter, conversely confirming the Commission’s decision,” the CJEU stated in its most recent opinion.

Apple claims that it has already paid $20 billion (£15 billion) in taxes on the applicable US profits.

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“This case has never been about how much tax we pay, but which government we are required to pay it to,” an Apple spokesman stated. Wherever we operate, we always pay all the taxes we due and there has never been a special offer.

“Apple is honored to be a global leader in innovation and growth, as well as a constant among the top taxpayers in the world in Europe. The European Commission is attempting to amend the regulations retroactively and is ignoring the fact that our revenue was already subject to US taxes, as required by international tax law.

“We are disappointed with today’s decision as previously the General Court reviewed the facts and categorically annulled this case.”

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