Apple has lost its landmark tax battle against the EU and will have to pay some $14.5 billion in unpaid taxes to Ireland.
The European Court of Justice announced its ruling less than a day after the iPhone 16 and iPhone 16 Pro were unveiled. It marks the end of a 10-year battle over Apple’s tax payments in Ireland, and questions over whether Apple had been given illegal tax benefits from the country over the course of some 20 years. Adding some strangeness to the case, both Apple and Ireland have protested the ruling, which would see Apple on the hook for (and Ireland in benefit of) 13 billion euros.
The EU originally ruled against Apple in 2016 following a two-year investigation, a ruling annulled by the EU General Court in 2020 following an appeal from Apple and Ireland. Now, the European Court of Justice, the bloc’s highest legal body, has set aside that ruling.
Apple’s EU tax saga finally over
The money at stake has been held in escrow for some ten years, so the material impact on Apple should be minimal. However, Apple remains defiant against the verdict. In a statement to iMore, the company said “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. Apple is proud to be an engine of growth and innovation across Europe and around the world, and to consistently be one of the largest taxpayers in the world. 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. We are disappointed with today’s decision as previously the General Court reviewed the facts and categorically annulled this case.”
Apple further noted that it has paid more than $20 billion in tax to the United States on the same profits the EU claims should be taxed in Ireland. Apple says that between 2003 and 2014, the decade scrutinized by the EU, the company paid $577 million in tax to Irish Revenue, 12.5% of the profits it generated in the country.