EU Orders Apple to Pay €13 Billion in Back Taxes to Ireland
The European Court has ruled that Apple must pay Ireland €13 billion ($14 billion) in unpaid taxes, ending an eight-year dispute.
The European Commission had accused Ireland of giving Apple illegal tax benefits back in 2016. Ireland disagreed, but now says it will comply with the ruling. Apple is disappointed, claiming the European Commission is unfairly changing the rules.
In a separate case, the court also fined Google €2.4 billion for abusing its market power with its shopping service. The European Union’s antitrust chief, Margrethe Vestager, praised these decisions as victories for tax fairness and European citizens.
The Apple case has been lengthy and complex. It focused on how Apple’s profits were taxed from 1991 to 2014. The original decision found that Ireland’s tax treatment of Apple was unfair, as it gave Apple advantages not available to other companies.
Although a lower court previously overturned this decision, the higher court has now confirmed the European Commission’s stance.
Ireland has been trying to avoid recovering the tax money from Apple, arguing that having Apple based there benefits the country due to its low corporate tax rates.
The European Union believes Ireland’s low tax rates unfairly subsidized Apple, and the ruling is a significant win for the EU’s efforts to regulate state aid.
Tove Maria Ryding from the European Network on Debt and Development welcomed the decision but emphasized that this case highlights broader issues with the global tax system.
Additionally, Google has been ordered to pay a fine for market dominance abuse, which it plans to appeal. This decision, along with the Apple ruling, marks a significant day for European regulatory actions against major tech companies.
Credit : BBC
https://www.bbc.com/news/articles/ckgwkwxr4eqo