Apple has lost its historic 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 about whether Apple had received illegal tax benefits from the country over the course of about 20 years. To add some strangeness to the case, both Apple and Ireland have protested the ruling, which would leave Apple at risk (and Ireland to benefit from) €13 billion.
The EU originally ruled against Apple in 2016 after a two-year investigation, a ruling overturned by the General Court of the EU in 2020 after an appeal by Apple and Ireland. Now, the European Court of Justice, the bloc’s highest legal body, has overturned that ruling.
Apple’s EU tax saga is finally over
The money at stake has been held in escrow for about ten years, so the material impact on Apple should be minimal. However, Apple remains defiant in the face of the verdict. In a statement to iMore, the company said: “This case has never been about how much tax we pay, but rather which government we must pay it to. We always pay all the taxes we owe wherever we operate and there has never been a special agreement. Apple is proud to be an engine of growth and innovation in Europe and around the world, and to consistently be one of the largest taxpayers in the world. The European Commission is trying to change the rules retroactively and ignore that, as required by international tax law, our income was already subject to “We are disappointed with today’s decision, as the General Court previously reviewed the facts and categorically overturned this case.”
Apple further noted that it has paid more than $20 billion in taxes to the United States on the same profits that the EU claims should be taxed in Ireland. Apple says that between 2003 and 2014, the decade analyzed by the EU, the company paid $577 million in taxes to the Irish Treasury, 12.5% of the profits it generated in the country.
