Apple Ordered to Repay £11 Billion in Unlawful Tax Concessions in EU Landmark Ruling

Grace Edwards 11 Sep 2024

In a significant ruling, the European Commission has held Apple accountable for substantial tax obligations owed to Ireland. The tech behemoth has been instructed to repay approximately £11 billion due to claims of receiving unauthorized tax concessions from 1991 to 2014.

The BBC reports that back in 2016, Ireland was found to have provided Apple with what was deemed as unlawful support, a decision that the EU now mandates Ireland to rectify. While the Irish administration has conveyed its desire to comply with this ruling, Apple appears to be less than satisfied, asserting that the EU is attempting to make retroactive changes to the regulations.

This unauthorized aid reportedly involved Apple's strategies for profit generation in Ireland through two subsidiaries established to benefit from tax exemptions. Initially examined by the EU in 2016 and dismissed, the case resurfaced in 2020, leading to the conclusion that legal missteps had transpired. Consequently, Tim Cook and the Apple team will be required to settle their outstanding tax debts.

Despite the significant amount of £11 billion potentially benefiting Ireland, the country is reluctant to accept the payment, arguing that the advantages gained from making itself attractive to tech firms and corporations outweigh the supposed losses.

In a related development, Google also faced a ruling this week, demanding that the competing tech firm reimburse £2 billion due to violations pertaining to market dominance.