EU court upholds order for Apple to repay €13 billion in Irish back taxes.
The European Court of Justice (ECJ) has rejected Apple’s final appeal against an order for the tech giant to pay €13 billion in Irish back taxes.
Europe’s highest court ruled that Ireland had provided Apple with illegal state aid by permitting reduced tax rates. This confirms the European Commission’s 2016 decision that Apple availed an undue tax benefit from Irish authorities.
In 2020, the EU General Court overturned the commission’s order. However, the ECJ disagreed and backed the initial ruling on Tuesday.
The commission, the EU’s executive body, had argued Apple’s tax arrangement with Ireland was in breach of bloc competition laws.
Though the US company maintained no special deal was struck, it said it was let down by the ruling after an earlier annulment of the case.
The long-standing fight began with EU Competition Commissioner Margrethe Vestager’s crackdown on special tax deals between countries and large tech giants.
The judgment marks the end of legal proceedings, with Ireland now required to recover the back taxes from Apple. It strengthens the bloc’s stance against multinational tax avoidance.
