Skip to content

Apple relieved after court overturned EU’s $14.9 billion tax bill

court overturns ruling that ordered Apple to pay billions in back taxes to the Irish government
Jordan Major

On July 15, the European Union’s (EU) second-highest court overturned a ruling that targeted Apple. The iPhone-maker received an order to pay €13 billion ($14.9 billion) in back taxes in 2016 to the Irish government.

The European Commission made that ruling. At the time, it was seen as a considerable win for the EU’s antitrust chief, Margrethe Vestager.

A ‘sweetheart deal’

The antitrust chief said that a ‘sweetheart deal’ between the Irish government and Apple meant that the iPhone-maker paid tax rates of below 1% for years. This deal came in a uniquely preferential package that counted as ‘illegal state aid’. Vestager said in 2016:

“Member States cannot give tax benefits to selected companies – this is illegal under EU state aid rules. The Commission’s investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years.”

Both the Irish government and Apple refuted these claims.

However, judges of the General Court of the European Union overturned that decision. These judges said in a statement that the Commission failed showing to the requisite legal standard that Apple had any advantage from this arrangement. The Commission now has two months and ten days to appeal the overruling decision.

The trading session [July 14th] closed at $388.23 price per AAPL share.

AAPL price chart. Finviz.com data.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.