Apple will have to pay about $14.5 billion in unpaid taxes to Ireland after losing a landmark tax battle with the European Union.
The European Court of Justice announced its ruling less than a day after iphone 16 and iPhone 16 Pro Unveiled. It marks the end of a decade-long battle over Apple’s tax payments in Ireland and questions whether Apple received illegal tax benefits from the country for about 20 years. Even more bizarrely, both Apple and Ireland protested the ruling, which would have left Apple (which benefited Ireland) liable for €13 billion in damages.
The EU initially ruled against Apple in 2016 after a two-year investigation, but the EU General Court overturned the ruling in 2020 after Apple and Ireland appealed. Now, the European Court of Justice, the EU’s top legal body, has quashed that ruling.
Apple’s EU tax saga finally ends
The funds have been held in escrow for about a decade, so the material impact on Apple should be minimal. However, Apple remains dissatisfied with the verdict. In a statement to iMore, the company said, “This case has never been about how much tax we pay, but rather which government we need to pay our taxes to. No matter where we do business, we will pay what we are owed.” All taxes, and there has never been a situation where the rules were changed and ignored upon request.
Apple further noted that it has paid more than $20 billion in taxes to the United States, while the EU claims those profits should be taxed in Ireland. Apple said it paid $577 million in taxes to the Irish Revenue Authority between 2003 and 2014, the period under EU scrutiny, or 12.5% of the profits it made in the country.