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Ireland wins appeal in €13 billion Apple tax case
Case likely to be appealed again up to Europe’s highest court
Europe’s second-highest court ruled on Wednesday that the Republic did not give Apple illegal state aid, overturning a European Commission decision four years ago that the iPhone maker owed Revenue €13.1 billion in back taxes.
The General Court in Luxembourg ruled that the commission “did not succeed in showing to the requisite legal standard” that Apple received tax advantages from the Republic.
The ruling may still be appealed by the commission before the Court of Justice of the European Union, the EU’s highest court. It could take up to a further three years before there is a final outcome on the case, stemming from the world’s biggest-ever anti-trust decision.
Most of the €14.3 billion collected by the Government in 2018 following directions from the commission, including €1.2 billion of interest, will remain in escrow until a final verdict is delivered.
The ruling marks another setback for European competition commissioner Margrethe Vestager, who has made the tax crackdown a centrepiece of her time in office and said on Wednesday that her team is considering its next step in relation to the case.
The General Court last year overturned her demand for Starbucks to pay up to €30 million in Dutch back taxes. In another case, the court subsequently threw out her ruling against a Belgian tax scheme for 39 multinationals. Still, the Republic’s corporate tax regime remains in focus.
