Apple ordered to pay record $14.3B tax bill to Ireland by EU

September 10, 2024
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Apple ordered to pay record $14.3B tax bill to Ireland by EU

Photo credit: Zhiyue/ Unsplash

On the same day as Google was ordered to pay 2.4 billion euro ($2.7 billion) in a long-running antitrust cast — and less than 24 hours after the unveiling of its iPhone 16 — Apple has been ordered to cough up a massive 13 billion euros ($14.3 billion) in back taxes to Ireland by the European Union's Court of Justice on Tuesday. 

The ruling brings an end to the bitter legal feud between Apple and the EU antitrust chief Margrethe Vestager, as the EU continues its moves to clampdown on so-called "sweetheart deals" between EU countries and multinationals that are viewed as unfair to competitors.

"The Court of Justice gives final judgment in the matter and confirms the European Commission's 2016 decision: Ireland granted Apple unlawful aid which Ireland is required to recover," the court stated.

The record tax order was first given in 2016, ruling that Apple was the beneficiary of Irish tax rulings for more than 20 years, artificially reducing the tax to 0.005% in some instances and attracting Big Tech companies to set up European HQs in the country.

Apple pushed back against the ruling, claiming it defied common sense, with CEO Tim Cook calling it "total political crap," but the Court of Justice has finally ruled in favor of EU antitrust chief Vestager.

Clearly still aggrieved, after the ruling was announced on Tuesday, Apple responded: "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.”

The ruling is final and cannot be appealed.

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