Will Ireland Get Apple’s Euro 13 Billion, We Will Know Today, The Final Verdict
Dublin: Ireland’s prolonged legal dispute with the European Commission over €13 billion in alleged unpaid taxes from Apple is nearing a pivotal moment. The case, which began in 2016, revolves around claims that Ireland provided Apple with illegal tax benefits, allowing the company to pay far less tax than other firms. The European Commission argues that these advantages lowered Apple’s tax obligations, and it has demanded that Apple repay €13 billion for the years 2003 to 2014.
Apple, supported by the Irish government, appealed the decision, placing the €13 billion in an escrow account during the legal proceedings. Ireland’s concern was that the Commission’s intervention would harm the country’s business-friendly tax environment and undermine its sovereignty over national tax policy. Apple, on the other hand, argued that its tax obligations should be paid in the U.S., where its intellectual property is developed, rather than in Ireland.
The case hinges on Apple’s use of “stateless” Irish entities, which allowed it to shield substantial profits from taxation by exploiting loopholes in Irish law. The Commission asserts that this arrangement effectively gave Apple a “sweetheart deal,” though Ireland maintains it followed standard tax practices.
While the lower court initially ruled in favour of Apple and Ireland in 2020, a subsequent legal opinion suggested that decision should be overturned. The European Court of Justice’s forthcoming ruling could bring an end to the saga, though further appeals remain possible.
The case is significant not only for Ireland but for the broader European effort to address tax avoidance by multinational companies. A ruling against Apple could set a precedent for similar cases, while a win for Apple could weaken the Commission’s crackdown on profit shifting by large corporations. However, after years of complex litigation, the real beneficiaries of this drawn-out process appear to be the lawyers involved.
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