A day after the iPhone 16 event, the European Court of Justice decided that Apple has to pay $14 billion in unpaid taxes to Ireland. This decision comes after the European Commission accused Ireland of giving Apple “illegal tax advantages eight years ago.”
While the Irish government argues that Apple doesn’t need to pay for these taxes, the ECJ told Cupertino that the decision was final and that “Ireland granted Apple unlawful aid, which Ireland is required to recover.”
What’s interesting about this case is that Ireland has always considered itself an attractive home for large companies. With the lowest corporate tax rates in the EU, the country is Apple’s base for Europe, the Middle East, and Africa.
Now, even though Cupertino might not do anything to switch offices to other countries, this might impact their relationship from now on.
On the other hand, the European Commission considers this decision a big win against big tech companies, as it thinks these companies use “creative financial arrangements to reduce their tax bills.”
In a statement sent to BBC, Apple 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. 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.”
The European Court of Justice has also ruled that Google must pay a $2,6B fine for abusing the market dominance of its shopping comparison services.
BGR will keep following how the fight between big techs and the EU unfolds.
