EU’s top court sides with commission in €13bn Apple tax case

The EU’s top court has sided with the European Commission in its bid to make Apple pay billons of euros of back taxes to the Republic, delivering a major loss to the Government and the US technology giant.
The European Court of Justice (ECJ) said on Tuesday it has “set aside” a ruling by the second-highest court, the General Court, four years ago, which had quashed the commission’s decision that Apple owed the Republic €13 billion in taxes. The long-running dispute is the world’s largest largest ever antitrust case.
The ECJ said that the lower court in Luxembourg had “erred” when it ruled the commission had not proved its case sufficiently.
“After setting aside the judgment under appeal, the Court of Justice considers that the state of the proceedings is such that it may give final judgment in the actions,” the ECJ said in a statement. “In that context, the court confirms in particular the commission’s approach.”
The decision will pave the way Apple to turn over to the Government money that has been held in an escrow account in Dublin ever since it was ordered to collect the taxes pending the outcome of appeals. At the end of last year, the escrow account held almost €13.8 billion.”
EU competition commissioner Margrethe Vestager ordered Apple in 2016 to pay the State more than €13 billion in alleged back taxes, covering 2004-2014, as she claimed the Republic had given the US tech giant illegal tax aid.
The decision centred on two tax opinions, or “rulings” as they are referred to, handed out by Revenue in 1991 and 2007 to Apple subsidiaries in Ireland. The commission said the rulings gave Apple an unfair and select advantage over other corporate taxpayers.
A legal appeal by Ireland and Apple against the commission’s decision resulted in a ruling by the EU general court in 2020 that Ms Vestager’s officials fell short of showing to “the requisite legal standard” that Apple had received illegal State aid.
The advocate general concluded the general court had made a series of errors of law in its ruling.
A spokesman for Apple said on Tuesday that the case “has never been about how much tax we pay, but which government we are required to pay it to”.
“We always pay all the taxes we owe wherever we operate and there has never been a special deal. Apple is proud to be an engine of growth and innovation across Europe and around the world, and to consistently be one of the largest taxpayers in the world,” he said.
“The European Commission is trying to retroactively change the rules and ignore that, as required by international tax law, our income was already subject to taxes in the US. We are disappointed with today’s decision as previously the General Court reviewed the facts and categorically annulled this case.”