Apple loses fight against $14.4 billion EU tax order to Ireland

By Foo Yun Chee

BRUSSELS (Reuters) -Apple on Tuesday lost its fight against an order by EU competition regulators to pay 13 billion euros ($14.4 billion) in back taxes to Ireland as part of an EU crackdown against sweetheart deals between EU countries and multinationals.

The European Commission issued the order in 2016, saying that the iPhone maker benefited from two Irish tax rulings for over two decades that artificially reduced its tax burden to as low as 0.005% in 2014.

Apple (NASDAQ:AAPL ) had said the record EU tax order defied reality and common sense. Ireland, whose low tax rates helped it to attract Big Tech to set up their European headquarters, had also challenged the EU ruling.

The Luxembourg-based Court of Justice of the European Union sided with EU antitrust chief Margrethe Vestager.

"The Court of Justice gives final judgment in the matter and confirms the European Commission's 2016 decision: Ireland granted Apple unlawful aid which Ireland is required to recover," judges said.

Apple expressed disappointment with the ruling.

"The European Commission is trying to retroactively change the rules and ignore that, as required by international tax law, our income was already subject to taxes in the U.S.," the company said.



The ruling is final and cannot be appealed.

($1 = 0.9061 euros)

Source: Investing.com