The European Court of Justice (ECJ) has ruled that tech giant Apple must pay back €13bn in unpaid taxes to Ireland, following a lengthy legal battle that began eight years ago. The EU Commission accused Ireland of granting Apple illegal tax advantages, a decision that has now been upheld by the ECJ.
Apple has consistently denied any wrongdoing, stating that they have always paid all the taxes they owe wherever they operate. The company’s representative emphasized that the case was not about the amount of tax paid, but rather which government it should be paid to. Apple also highlighted its contributions to growth and innovation in Europe and around the world.
The ruling covers the period from 1991 to 2014 and relates to the tax treatment of profits generated by two Apple subsidiaries in Ireland. The ECJ found that these tax arrangements were illegal as they provided Apple with advantages that were not available to other companies.
This decision marks the end of a long legal battle between Apple, Ireland, and the European Commission. The Commission has been cracking down on multinational companies using creative financial arrangements to reduce their tax bills. The ruling against Apple comes just a day after the tech giant released its new iPhone 16 range.
In a similar case, the ECJ has also ruled that Google must pay a €2.4bn fine for abusing the market dominance of its shopping comparison service. This decision brings an end to another long-running case for the tech giant.
