Following the recent launch of the iPhone 16, the Court of Justice of the European Union has ordered Apple to pay a staggering 14 billion USD in unpaid taxes to Ireland. This decision came after the European Commission accused Ireland of granting Apple an illegal tax advantage eight years ago.
Despite Ireland’s argument that Apple was not obligated to pay the taxes, the court ruled that the decision was final and that Ireland must withdraw the illegal aid it provided to Apple. Ireland, known for its low corporate tax rate, has always been an attractive location for large companies, including Apple. However, this ruling may impact the relationship between Apple and Ireland, although it remains unclear whether Apple will relocate its offices.
In response, Apple emphasized that the lawsuit was not about the amount of tax paid, but rather the jurisdiction in which the tax is paid. Additionally, the European Commission sees this decision as a significant victory against Big Tech, highlighting the issue of creative tax strategies utilized by major companies to reduce their tax burdens.
In a separate ruling, the Court of Justice of the European Union also mandated that Google pay a fine of 2.6 billion USD for abusing its dominant market position in comparison shopping services.