Apple loses fight against EU tax ruling, ordered to pay €13 billion
On Tuesday, Apple Inc. lost its legal battle against an order by European Union competition regulators, which demands the tech giant pay €13 billion in back taxes to Ireland. This decision is part of the EU’s broader crackdown on preferential tax arrangements between member states and multinational corporations.
The European Commission’s 2016 ruling determined that Apple had benefited from two Irish tax rulings for over twenty years, which had significantly lowered its tax liabilities. In 2014, Apple’s tax rate was reported to be as low as 0.005%, a figure deemed unacceptably low by the EU.
Margrethe Vestager, the EU’s antitrust chief, emphasized that this decision aligns with the EU’s ongoing efforts against detrimental tax competition and aggressive tax planning. “Our investigations have decisively contributed to a mind shift and a change of attitude among member states. They have helped trigger and accelerate regulatory and legislative reform,” Vestager stated during a press conference.
The ruling underscores the EU’s commitment to ensuring fair tax practices and preventing multinational corporations from exploiting loopholes to gain an unfair advantage.
