Apple loses appeal against USD14.3B tax bill in EU court ruling

(MENAFN) The European Union's highest court ruled against Apple on Tuesday, requiring the tech giant to pay up to €13 billion (USD14.3 billion) in back taxes to Ireland. The court’s decision marks a significant win for the European Commission, which had argued that the exceptionally low corporate tax rate Apple enjoyed in Ireland—at just 0.005 percent—constituted illegal state aid. This ruling overturns a previous decision by the lower-level General Court, which had sided with Apple and the Irish government, both of whom had contested the European Commission's findings.

The court stated that Ireland had indeed provided Apple with illegal state aid that must be recovered, issuing a definitive ruling on the matter. As a result, Apple is now liable to pay the substantial sum of €13 billion, which could increase further when considering additional interest and legal costs. This judgment represents a notable and contentious victory for the European Commission in its efforts to challenge national tax policies that it believes distort fair competition within the EU's single market. Typically, tax policy remains the domain of individual EU member states, with EU intervention only occurring in cases where tax advantages are seen to harm the internal market.

Apple expressed disappointment with the ruling, maintaining its stance that it has always paid all taxes owed in every jurisdiction where it operates. In a statement, the company denied receiving any special treatment from Ireland, emphasizing its role as one of the world’s largest taxpayers. This latest development underscores the ongoing tension between multinational corporations and regulatory bodies over the interpretation and application of tax laws within the European Union. 

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