The European Court of Justice (ECJ) has ordered Apple to pay €13 billion in unpaid taxes to Ireland. This decision follows a long-standing dispute over tax advantages granted to the tech giant.
Initially, the European Commission accused Ireland of providing illegal tax benefits to Apple in 2016, but the Irish government has consistently contested the necessity of repaying the amount.
The ECJ has now delivered a final ruling, affirming that Ireland’s tax arrangements with Apple were unlawful and must be rectified.
The court’s decision, which applies to the period from 1991 to 2014, focused on the tax treatment of profits earned by two Apple subsidiaries in Ireland. The advantages given to Apple were deemed illegal because they were not available to other companies.
“The Court of Justice gives final judgment in the matter and confirms the European Commission’s 2016 decision: Ireland granted Apple unlawful aid which Ireland is required to recover,” the court said.
In response to the ruling, the Irish government has stated its respect for the decision, while Apple has expressed disappointment, accusing the European Commission of attempting to retroactively alter tax rules.
This ruling upholds the European Commission’s original 2016 decision.
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