Apple's €14.3 billion Irish tax break case is officially over
Apple's Irish tax break problems are officially over. Ireland's Department of Finance has reported that the entirety of the €14.25 billion fund in Apple's escrow account for the case has been fully transferred to the Exchequer or Ireland's central fund. The escrow account has, therefore, been closed. This marks the end of one of the world's largest antitrust cases that started way back in 2013 when the European Commission launched an investigation to determine whether Apple was enjoying better tax rates than warranted under the bloc's laws.
The commission found that the tax breaks Ireland gave Apple back then was illegal shortly after its investigation started. Then in 2016, after years of investigation, the commission ruled that the company had to pay back the "illegal state aid" it received over a 10-year-period before the probe into its tax practices was launched, since it was given "significant advantage" over its rivals.
Apparently, Apple created Irish subsidiaries that owned most of its intellectual properties. Every time the company sells a product, the Irish subsidiaries get paid for the use of Apple's IPs. And thanks to the company's agreement with Ireland, Apple was only paying a 1 percent tax rate on European profits that became as low as .005 percent in 2014. The Commission ordered Apple to pay back the €13.1 billion in taxes it owed from between 2003 and 2014, with an interest of €1.2 billion on top.
In 2018, the company transferred €14.3 billion to an escrow account as it appealed the Commission's ruling. The EU's General Court ruled in Apple's favor in 2020, explaining that there wasn't enough evidence to show that the company had broken the bloc's rules. But in 2024, the European Court of Justice overturned that decision and confirmed the Commission's original ruling in 2016.
As The Irish Times has reported, the funds continued depreciating in value since it was deposited into escrow until 2023. It only managed to regain €470 million within 16 months before the account's closure in May, thanks to higher interest rates and investments with higher yields. This article originally appeared on Engadget at https://www.engadget.com/big-tech/apples-%E2%82%AC143-billion-irish-tax-break-case-is-officially-over-113755771.html?src=rss