Apple loses a €13 billion tax break case in the EU court
Kyiv • UNN
The EU's highest court has ruled that Apple has been illegally enjoying tax benefits in Ireland for more than 20 years. The company has to pay EUR 13 billion to the Irish treasury, which is a victory for the European Commission in its fight against tech giants.
Apple has lost a €13 billion case in the EU's highest court, UNN reports, citing Euronews.
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"The European Court of Justice concluded that the company had been illegally enjoying EU tax benefits for more than 20 years - thanks to an agreement with the Irish authorities, it attributed the vast majority of its sales profits in Europe to its 'head office', which resulted in a tax rate of 0.005% in 2014," the publication writes.
"Ireland has provided Apple with unlawful assistance, which Ireland must reimburse," the court said in a statement.
The company will now have to pay €13 billion to the Irish treasury, and possibly more, with interest and costs. This is roughly the same amount as the company earned from selling Macs worldwide in two quarters. Pending the decision, this amount was arrested and placed in an escrow account.
The victory over Apple is one of two triumphs in Brussels' fight against large tech companies today. On September 10, it became known that Google lost its appeal in an antitrust case. The European Court of Justice ruled that the company is indeed promoting its own price comparison service Google Shopping in the search engine, harassing competitors, the publication notes.
EU Court upholds Google's record fine of EUR 2.4 billionSep 10 2024, 11:29 AM • 11726 views
This is, as noted, a double victory for European Commissioner for Competition and Vice-President of the European Commission Margrethe Vestager, whose term in office expires at the end of this year.
For her lawsuits against large - and mostly American - multinationals such as Starbucks, Fiat Chrysler, and Amazon, former President Donald Trump called her the EU's "tax lady".
The case is reportedly an unusual and controversial attempt by Brussels to intervene in tax policy, which is usually determined by national capitals. Usually, the EU only intervenes if tax exemptions disrupt the bloc's internal market.
Despite the billions that Ireland should receive under the court's decision, Dublin, as noted, opposed the European Commission's lawsuit. Thanks to various benefits, the country has been able to attract billions in investment and has become a European center for many American technology companies.
During the trial, Apple argued that it was innocent because its branches in Ireland do not conduct their own development, and it has already paid all taxes to the United States.
"The European Commission is trying to change the rules retroactively and ignore the fact that, as required by international tax law, our income has already been taxed in the United States," the company said, emphasizing that it is one of the largest taxpayers in the world.
