What's happened
The European Court of Justice upheld a ruling that Ireland granted Apple illegal tax benefits, ordering the company to repay €13 billion. This decision has significant implications for Ireland's economy and its relationship with multinational corporations, as the funds are now in an escrow account pending distribution.
Why it matters
What the papers say
According to The Guardian, the ruling has left Ireland with a 'tainted bonanza' that it never wanted, highlighting the complexities of its reliance on corporate tax receipts. Politico notes that Apple's appeal was lost just as it launched a new iPhone, emphasizing the company's ongoing regulatory challenges in the EU. Al Jazeera reports that Vestager hailed the decision as a victory for tax justice, while Apple expressed disappointment, arguing that it has always paid the taxes owed. The Independent adds that the funds held in escrow may be claimed by other EU member states, complicating the financial landscape further.
How we got here
The ruling stems from a 2016 European Commission decision that found Ireland's tax arrangements with Apple provided the company with an unfair advantage, allowing it to pay an effective tax rate as low as 0.005%. Both Apple and Ireland had previously contested this ruling.
Common question
More on these topics
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Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services.
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Margrethe Vestager is a Danish social liberal politician serving in the Von der Leyen Commission as Executive Vice President of the European Commission for A Europe Fit for the Digital Age since 1 December 2019 and European Commissioner for Competition si
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Ireland is an island in the North Atlantic. It is separated from Great Britain to its east by the North Channel, the Irish Sea, and St George's Channel.
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The European Union is a political and economic union of 27 member states that are located primarily in Europe. Its members have a combined area of 4,233,255.3 km² and an estimated total population of about 447 million.
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The Court of Justice, informally known as the European Court of Justice, is the supreme court of the European Union in matters of European Union law, and is considered by many 'the most powerful and influential international court that is realistically po
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Google LLC is an American multinational technology company that specializes in Internet-related services and products, which include online advertising technologies, a search engine, cloud computing, software, and hardware.
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The European Commission is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU.