Luxembourg, September 10 (FinanceFlashNews.com) – Apple has suffered a definitive defeat at the European Court of Justice (ECJ) in its long-running legal battle with the European Commission (EC) over unpaid taxes amounting to approximately €13 billion. The court in Luxembourg overturned a previous ruling in favor of Apple, siding with the EU’s executive body. This decision marks a significant moment in a dispute over tax benefits provided to the iPhone manufacturer by Ireland, which the Commission claimed violated EU competition rules.
In 2016, the European Commission ordered Apple to repay €13 billion in taxes, plus interest, arguing that the tax arrangements between Apple and Ireland constituted illegal state aid. The funds have since been held in escrow.
Apple had argued throughout the dispute that the revenues of its two Irish subsidiaries were primarily taxed in the United States. In 2020, Apple won a ruling at the EU General Court, which annulled the Commission’s decision, stating that the Commission had failed to demonstrate that Apple’s tax arrangements from 1991 and 2007 constituted unlawful state aid.
The Commission subsequently appealed to the European Court of Justice, which has now ruled in its favor. The court concluded that Ireland provided Apple with undue assistance, which should be returned.
This case is a landmark moment in the EU’s efforts to enforce tax regulations and ensure fair competition across member states.
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Keywords: Apple, European Court of Justice, Ireland, European Commission, unpaid taxes, state aid, tax benefits, competition rules
