Apple owes billions in Irish back taxes

The Court of Justice of the European Union has ruled that Apple must pay €13 billion ($14.3 billion) in back taxes to Ireland, following a lengthy legal battle over alleged unlawful state aid. The European Commission had initially determined in 2016 that a tax arrangement between Apple and Ireland violated EU state aid rules. Although the General Court annulled this decision in 2020, claiming insufficient evidence of selective advantage, the recent ruling overturned that finding. The court stated that the General Court had erred in its assessment and confirmed that Apple had indeed received an unfair tax advantage from Ireland between 1991 and 2014. European Commission Vice President Margrethe Vestager hailed the decision as a victory for tax justice and emphasized the need for a level playing field in the Single Market. The ruling not only affects Apple but also highlights broader issues of corporate tax avoidance in the EU, which is estimated to cost the bloc up to €70 billion annually. Apple will now have to forfeit the funds that had been held in escrow pending the outcome of the case, which may impact investor confidence.

- The Court of Justice of the EU ruled Apple owes €13 billion in back taxes to Ireland.

- The ruling overturns a previous decision by the General Court that favored Apple.

- The European Commission had previously found Apple's tax deal with Ireland to be unlawful.

- The case highlights ongoing issues of corporate tax avoidance in the EU.

- The decision is seen as a significant win for tax justice and fair competition in the EU.