Apple Ordered to Pay $14.4 Billion in EU Tax Ruling 2025
The European Union's top court has mandated Apple to repay a €13 billion tax bill following a landmark decision overturning previous rulings on Irish tax benefits.
Essential Insights
- Apple has been found to have benefited from unlawful tax advantages in Ireland, resulting in a €13 billion ($14.4 billion) repayment order by the EU's highest court in 2024.
- The European Commission initially ruled in 2016 that Apple’s use of intellectual property through its Irish subsidiaries reduced its taxable income, but an appeals court later challenged the sufficiency of evidence.
- The Court of Justice of the European Union reversed the appeals court decision, confirming that sales involving Apple’s Irish-held intellectual property must be included in the taxable base.
In a significant 2024 ruling, Apple Inc. (AAPL) faces a €13 billion ($14.4 billion) tax repayment after the Court of Justice of the European Union overturned a prior lower court decision regarding Irish tax breaks for the tech giant.
The European Commission had determined in 2016 that Apple’s Irish subsidiaries’ intellectual property was used globally in product sales, which should have been reflected in the tax base declared in Ireland.
At that time, the Commission estimated Apple received €13 billion in undue tax benefits and demanded repayment. However, a 2020 appeals court found the evidence insufficient to prove Apple gained a selective advantage from Irish tax rulings.
Lower Court’s Misinterpretation of Tax Law Corrected
The Court of Justice clarified in 2024 that the lower court had made "erroneous assessments" regarding tax law, asserting that the Commission’s evidence was adequate to demonstrate Apple’s advantage.
This ruling coincides closely with Apple’s launch of its latest iPhone and Apple Watch models.
Apple has expressed disappointment with the decision but has not provided further comments. Following the announcement, Apple’s stock saw a slight dip below $219, though it remains up approximately 14% for the year.
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