EU court commands Apple to give Ireland EUR13 billion
Date
9/18/2024 8:22:25 AM
(MENAFN) The European Union's highest court has mandated that tech giant Apple must pay EUR13 billion (approximately USD14.4 billion) to Ireland in overdue taxes, marking a significant move in the European Union's ongoing effort to address special tax arrangements made between multinational corporations and member states. The ruling, announced by the European Court of Justice (ECJ) on Tuesday, reinstates an earlier decision made by the European Commission in 2016, which claimed that Apple had benefited from two Irish tax rulings over a period of more than twenty years. These rulings were said to have artificially lowered Apple's tax obligations, allowing the company to capitalize on Ireland's attractive low tax rates that have drawn numerous tech firms to establish their European headquarters there.
This decision had previously been overturned by the European Union’s second-highest court in 2020 following appeals from both Apple and the Irish government. However, a review in 2023 by an ECJ advocate-general highlighted legal mistakes in the earlier ruling that favored Apple, recommending that the case be re-evaluated.
In its definitive ruling, the ECJ affirmed that the Irish government had granted Apple unlawful state aid, and instructed Ireland to recover the funds. ECJ judges reiterated the importance of maintaining fair competition within the European Union by ensuring that companies do not receive preferential tax treatment that undermines market integrity.
Apple expressed disappointment over the court's decision, arguing that the European Commission is attempting to retroactively alter tax regulations and disregarding that the company had already paid taxes on its income in the United States.
This ruling is part of the European Union's broader strategy to confront challenges posed by large American tech companies, which include issues related to data protection, taxation, and antitrust regulations. The decision underscores the European Union's commitment to ensuring that all companies contribute fairly to the economies in which they operate, as it continues to scrutinize and challenge favorable tax arrangements in a rapidly evolving digital economy.
MENAFN18092024000045015687ID1108687720
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.