Apple loses EU court case over €13 billion Irish tax dispute

Apple Inc. has suffered a significant setback in its ongoing legal battle with the European Union (EU) over its tax arrangements in Ireland. The European Court of Justice (ECJ) has ruled against Apple, upholding a previous decision that Ireland granted the tech giant illegal state aid.

The EU Commission investigated Apple’s tax affairs in 2014, alleging that the company received preferential tax treatment from Ireland. In 2016, the Commission ordered Ireland to recover up to 13 billion euros in back taxes from Apple.

Both Apple and Ireland appealed the Commission’s decision, and in 2020, the General Court of the European Union overturned it, finding that the Commission had failed to prove that Apple received illegal state aid.  

However, the ECJ has reversed that decision, stating that the General Court erred in its assessment. The ECJ ruled that the tax arrangements granted to Apple by Ireland constituted illegal state aid, giving the company an unfair advantage over its competitors.

The ECJ’s decision is a significant victory for the EU’s efforts to combat tax avoidance by multinational corporations. It sends a clear message that member states cannot grant special tax deals to large companies without facing scrutiny from the EU.

Apple has not yet announced its next steps following the ECJ’s ruling. The company may appeal the decision or comply with the EU’s order to pay the 13 billion euro tax bill. The outcome of this case will have implications for other multinational corporations operating in the EU and could further shape the debate over corporate taxation.