Apple’s tax ruling finally concluded, with Europe’s top court ordering the company to pay Ireland €13 billion in unpaid taxes. The European Commission initially accused Ireland of giving Apple unauthorized tax breaks in 2016. Conversely, Ireland has always denied the need for reparations. Regardless of the ruling, the Irish government has stated it will abide by the court’s ruling. Apple disagreed and claimed that the European Commission had already changed the legislation.
The court concluded that Apple had received illegal state assistance from Ireland between 1991 and 2014. Apple was eligible for lower taxes under the agreement, which excluded other businesses. Apple’s European headquarters are in Ireland, which has one of the lowest corporate tax rates in the EU. Despite Ireland’s reluctance to collect the taxes, the court emphasized that Ireland must recover €13 billion since Apple’s tax system constituted an unfair benefit.
Ireland’s appeal led to the lower European Court of Justice overturning the decision in 2020. However, the higher court backed the European Commission after realizing the ruling had legal flaws. Apple claims that the issue in this case wasn’t so much about how much tax it paid as it was about which nation should get the money. The company also stated that US taxes on its profits had already been paid.
With this decision, the European Commission has made significant progress in holding large corporations responsible for their unfair tax methods. Even if Ireland is unwilling to carry out the order, it must begin collecting the taxes immediately. Tax reform advocates view this decision as a first step toward creating a fairer worldwide tax system for multinational firms.
With this ruling, the European Commission has made significant progress in ensuring that large corporations like Apple adhere to equitable tax regulations. Ireland must collect unpaid taxes even if it may not want to. Many tax reform supporters view Apple’s tax ruling as a critical first step toward developing a more fair international tax system for corporations. Google was also mandated to pay €2.4 billion for simultaneously abusing its dominating market position.
