Apple Inc. recently lost its court battle over a €13 billion Irish tax bill, which amounts to $14.4 billion. This decision by the European Union’s Court of Justice in Luxembourg is seen as a victory for the E.U.’s crackdown on special deals given by nations to large companies. The court upheld a 2016 ruling that Ireland had violated state-aid law by granting Apple an unfair advantage. This decision is a win for E.U. antitrust chief Margrethe Vestager, who has been advocating against such special tax arrangements.
The court’s ruling overturns a previous decision that favored Apple, stating that the commission’s regulators had made mistakes in their assessment. This decision is significant as it forces Apple to pay the €13 billion tax bill. Apple expressed disappointment in the court’s decision, noting that the general court had previously annulled the case. The tax bill represents a substantial amount, equivalent to about two quarters of Mac sales globally. The money has been held in an escrow account pending the final ruling.
The outcome of the court case is a setback for Ireland, which had denied providing any tax advantages to Apple or other tech companies to establish operations in the country. However, given the lengthy duration of the case, it is unlikely to have a significant impact on Ireland, which serves as a hub for the European headquarters of many major tech companies. Apple CEO Tim Cook had previously criticized the E.U.’s actions as “total political crap,” while the U.S. Treasury also expressed concerns about the E.U. becoming a “supra-national tax authority.”
The ruling is a significant win for Margrethe Vestager, who has been leading the charge against special tax deals for big companies. Her mandate in Brussels is coming to an end after two terms, making this decision a notable achievement in her tenure. The E.U.’s crackdown on special tax arrangements is aimed at ensuring fair competition among businesses operating in the region. Despite the negative outcome for Apple, the decision sets a precedent for future cases involving multinational companies and their tax practices.
Overall, the court’s decision to uphold the €13 billion Irish tax bill against Apple is a victory for the European Union’s efforts to combat special tax deals for big companies. This ruling is a significant win for Margrethe Vestager and sets a precedent for future cases involving multinational corporations. While the outcome is a setback for Apple and Ireland, the decision underscores the E.U.’s commitment to fair competition and tax practices within the region.
