Apple has lost a landmark tax battle against the EU and will have to pay $14.5 billion in unpaid taxes to Ireland.
The European Court of Justice announced its decision less than a day after its decision iPhone 16 and iPhone 16 Pro was presented. It marks the end of a 10-year battle over Apple’s tax payments in Ireland and questions over nearly 20 years of whether Apple was granted illegal tax breaks from the country. Adding some weirdness to the case, both Apple and Ireland contested the decision, which awarded Apple €13 billion (and in Ireland’s favor).
The EU originally ruled against Apple in 2016 after a two-year investigation, which was overturned by the EU General Court in 2020 following an appeal by Apple and Ireland. Now the European Court of Justice, the bloc’s highest legal body, has annulled that decision.
Apple’s EU tax saga is finally over
The money at stake has been held in escrow for about a decade, so the financial impact on Apple should be minimal. However, Apple is resisting the ruling. In a statement to iMore, the company said: “This case has never been about how much tax we pay, but to which government we have to pay it. We always pay all the taxes we owe wherever we operate, and there has never been a special arrangement. Apple is proud to be an engine of growth and innovation in Europe and around the world, and is proud to continue to be one of the largest taxpayers. As required by international tax law, our income is already taxed in the United States, and we are proud of today’s decision.” We are disappointed because earlier the Supreme Court considered the facts and overturned this case outright.”
Apple later noted that the EU paid more than $20 billion in taxes to the US on the same profits that should have been taxed in Ireland. Apple says that from 2003 to 2014, the decade under scrutiny by the EU, the company paid $577 million in Irish income tax, or 12.5% of its profits in the country.
