Apple Must Pay $14.4 Billion to Ireland in Crackdown On ‘Sweetheart Deals’ | EUROtoday

Apple has been ordered to pay €13 billion ($14.4bn) of unpaid taxes to the Irish state, in a courtroom ruling that ended a decade-long combat between Europe and the massive tech firm.

In a judgment handed down on Tuesday, the European Court of Justice (ECJ) agreed with a European Commission ruling in 2016, which discovered that for a interval of greater than 20 years Apple loved unlawful tax benefits that constituted state support from the Irish authorities.

“The Court of Justice gives final judgment in the matter and confirms the European Commission’s 2016 decision: Ireland granted Apple unlawful aid, which Ireland is required to recover,” the courtroom stated in an announcement.

“Today is a huge win for European citizens and tax justice,” Margrethe Vestager, the European competitors commissioner, stated in an announcement on X. “Ireland granted illegal aid to Apple.”

The Irish authorities stated that it’s going to respect the choice of the courtroom, and factors to it being of “historical relevance only”, claiming that it dates again to revenues in 1991 and 2007 that are “no longer in force,” as a result of it launched adjustments to its tax regime. “The Irish position has always been that Ireland does not give preferential tax treatment to any companies or taxpayers,” the federal government’s assertion learn.

Dr Stephen Daly, a reader in tax legislation at King’s College London, says he’s “stunned” by the choice, which has come after a prolonged backwards and forwards authorized battle that noticed the European General Court discover in Apple’s favour in 2020.

“I really didn’t see this coming,” Daly says. “I thought the Commission’s path to victory was incredibly narrow because it suffered some big defeats in similar cases against Fiat and Amazon. I thought this would be the same outcome. I’m also stunned because this is the biggest tax case in history: €13bn—which will be more than €14bn when interest is added on—will have to be paid back.”

The case pertains to tax offers the Irish authorities struck with Apple in 1991 and 2007 to encourage it to headquarter two European subsidiaries within the nation. Other firms weren’t provided the identical beneficial phrases, main the European Commission to accuse Ireland of giving Apple a “selective advantage.”

Ireland has lengthy come underneath scrutiny for allegedly offering a tax haven for US corporations. During his final stint within the White House, present presidential hopeful Donald Trump namechecked the nation in a speech during which he vowed to deliver “trillions of dollars” in tax revenues again to the US.

“For too long our tax code has incentivised companies to leave our country in search of lower tax rates,” he stated in 2017. “It happens—many, many companies. They’re going to Ireland. They’re going all over.”

According to Daly, the ECJ determination is “not good for Ireland.” “Ireland has always tried to position itself as a country that provides generous tax rules but rules that are fair,” he says. “This certainly has harmed Ireland Inc.”