Tue Sep 10 00:22:55 UTC 2024: ## Apple Loses EU Tax Battle, Ordered to Pay €13 Billion to Ireland
**Brussels, Belgium** – Apple has lost a long-running court battle with the European Union, forcing the tech giant to pay €13 billion ($14.4 billion) in back taxes to Ireland. This ruling marks a significant victory for the EU’s crackdown on “sweetheart deals” designed to minimize corporate tax burdens.
The European Commission, led by Margrethe Vestager, originally accused Ireland in 2016 of granting illegal tax benefits to Apple, unfairly diverting investment away from other countries. This “Double Irish” scheme involved complex corporate structures that allowed multinational companies to channel untaxed revenues to Irish subsidiaries, subsequently paid to another company registered in Ireland but taxed elsewhere, like the tax haven Bermuda.
Ireland’s low tax rates, enabled by the old tax regime, had been a major draw for tech giants seeking to set up their European headquarters. While both Apple and Ireland initially challenged the EU ruling, the European Court of Justice has now sided with the Commission, concluding that Apple had unfairly benefited from loopholes in the Irish tax system.
This ruling will have significant implications for both Apple and Ireland. Apple faces a hefty tax bill, while Ireland’s reputation as a tax haven for tech giants may be tarnished. The decision is likely to further incentivize the EU’s efforts to ensure fair taxation of multinational corporations and deter future attempts at tax avoidance.
First Piper 