In a dispute with the European Union (EU), Apple lost its last appeal on Tuesday in the EU’s top court to avoid paying $14.34 billion (13 billion euro) in back taxes to Ireland.
The case involved an eight-year dispute with the EU that centered on sweetheart deals that Ireland was offering that let Apple pay almost no taxes across the European bloc for 11 years.
In a press release about its Tuesday decision, the European Court of Justice said its ruling “confirms the European Commission’s 2016 decision: Ireland granted Apple unlawful aid which Ireland is required to recover.”
European antitrust Commissioner Margrethe Vestager, who led the charge against Apple, had accused the company in 2016 of striking an illegal tax deal with Irish authorities so that it could pay extremely low rates, adding that through the deals Apple paid next to nothing in taxes while instead it “should have paid taxes worth 13 billion euros on all related profits in Ireland.”
The 2016 decision found that Ireland granted Apple unlawful tax advantages between 2003 and 2014. Apple’s tax rate during this period dropped from 1 percent to 0.005 percent, according to EU officials. Apple has disputed such figures.
Peter Dazeley/Getty Images
However, the European Union’s General Court previously disagreed with the 2016 decision in its 2020 ruling, but that has now been overturned due to Tuesday’s ruling.
In response to Tuesday’s ruling, Vestager called it “a big win for European citizens and for tax justice.”
“I had prepared for a stiff upper lip, facing a possible defeat. But, you know, it was a win that made me cry. Because it is very important to show European taxpayers that once in a while, tax justice can be done,” Vestager said.
Apple has consistently denied receiving any special treatment from Ireland. A spokesperson reiterated this and their disappointment over the ruling in a statement on Tuesday.
“We are disappointed with today’s decision as previously the General Court reviewed the facts and categorically annulled this case,” Apple said in a statement. “There has never been a special deal.”
Newsweek reached out to Apple via email on Tuesday for further comment.
Meanwhile, the Irish government, which had opposed the Commission’s findings, said it would comply with the ruling but maintained that Ireland does not offer preferential tax treatment to any company. Notably, Ireland’s corporate tax policies have been revised since the deal in question.
This landmark decision is a reminder that large multinational corporations, particularly in the tech sector, remain under scrutiny from EU regulators. Vestager emphasized that the ruling shows “taxpayers that there can be fairness,” and “it has shown big companies that they are also not above the law when it comes to taxation.”