Apple to pay additional tax of 2 trillion yen for allegedly receiving unfair tax benefits in Ireland

The European Court of Justice has upheld the European Commission's decision to require Apple to pay 13 billion euros in back taxes in Ireland, in a case in which the European Commission sought to recover unfair tax treatment from the company.

Tax rulings: the Court of Justice sets aside the judgment of the General Court concerning tax rulings issued by Ireland in favor of Apple
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In 2016, the European Commission found that Apple had received unfair tax benefits in Ireland over a 24-year period and sought to pay 13 billion euros in back taxes, including interest on the taxes it had avoided.

However, Apple and Ireland appealed the European Commission's decision.

By Jinx!

In 2020, the General Court of the Court of Justice of the European Union overturned the European Commission's decision, finding that Ireland's tax benefits were based on profits generated by Apple's activities outside the United States and that Apple had not sufficiently demonstrated that it enjoyed a selective advantage.

The European Commission appealed the decision.

In the appeal, the Court of Justice overturned the General Court's decision, stating that the European Commission had failed to prove that Apple enjoys a selective advantage. It appreciated the European Commission's approach, which required that the activities of Apple's Irish subsidiary be compared with those of its parent company outside Ireland, rather than with those of its parent company in the United States, and issued a final judgment upholding the European Commission's decision.

This means that Apple will be required to pay back taxes of 13 billion euros, as originally decided by the European Commission.

Margrethe Vestager, the European Commissioner for Competition, who has been working on the case, said it was a 'major victory for European citizens and for tax justice.'

Today is a huge win for European citizens and tax justice.

👉In its final judgment, @EUCourtPress confirms @EU_Commission 2016 decision: Ireland granted illegal aid to @Apple .

Ireland now has to release up to 13 billion euros of unpaid taxes.

— Margrethe Vestager (@vestager) September 10, 2024