Apple will have to pay Ireland €13 billion in back taxes
The BBC’s Charlotte Edwards and Theo Leggett on the European Court of Justice’s ruling in a long gestating case about Apple paying (or not paying) taxes in Ireland:
The original decision covered the period from 1991 to 2014, and related to the way in which profits generated by two Apple subsidiaries based in Ireland were treated for tax purposes.
Those tax arrangements were deemed to be illegal because other companies were not able to obtain the same advantages.
Ireland, for its part, was trying to avoid collecting on these taxes, deeming the subsidies beneficial for bringing big businesses to Ireland. Though given that much of Apple’s Irish entities were reputedly present in name only, it’s a question of how much they actually created in jobs and revenues. (A question raised in general about localities offering tax incentives to large corporations.)
Apple expressed disappointment with the ruling in a statement, but said “This 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.”
European Commissioner for Competition Margrethe Vestager hailed the ruling as a victory, calling it ” a win for the level playing field in the Single Market, and for tax justice.”
One thing worth noting: the money in question has been in an escrow account during the legal wrangling, meaning that it’s not a fine, per se. Instead, that money will now be released to Ireland.