The European Court of Justice, the highest legal authority in the EU and headquartered in Luxembourg, announced its decision in the case filed by the EU Commission against Ireland and Apple.
Apple must pay 13 billion euros in back taxes to Ireland, court ruled
The decision stated that the European Court of Justice had upheld the EU Commission’s 2016 decision that Ireland had unlawfully provided aid to Apple and that the country should take it back.
The high court annulled the EU General Court’s previous tax decision in favor of Apple.
THE CASE PROCESS STARTED IN 2016
The EU Commission completed its three-year investigation into the taxation of companies established in Ireland by Apple, headquartered in the USA, for its European activities in 2016.
The EU Commission, which decided that the tax practices the company benefited from in Ireland were contrary to EU rules, decided to collect 13 billion euros and interest from Apple for the period between 2003 and 2014.
Apple accused the EU of acting unilaterally and changing tax rules in Ireland retroactively, and the Irish administration and Apple initiated legal proceedings against the Commission’s decision.
The case was taken up by the EU General Court, which is part of the European Court of Justice, and which in 2020 overturned an EU Commission decision on taxation in Ireland in Apple’s favour.
The General Court ruled that the EU Commission’s decision that Apple had received economic benefits in Ireland was not sufficiently substantiated and was erroneous.
The EU Commission had taken the decisions of the EU General Court to the European Court of Justice, the higher court, for legal review.
Following a legal battle, it was decided that Apple must pay back 13 billion euros in taxes to Ireland.
