Dublin: Technology company Apple has lost a long-running legal battle with the European Union. Following a court order, the company will pay Ireland $14.4 billion in back taxes.
In 2016, European Commission’s Competition Chief Margrethe Vestager accused Ireland of giving Apple illegal tax breaks, which unfairly diverted investment from other countries.
Both Apple and Ireland (which, due to its low tax rates, attracted major technology companies to establish their European headquarters there) challenged the EU’s decision.
However, the European Court of Justice sided with Chief Vestager, agreeing that Apple had been given an undue advantage due to flaws in Ireland’s tax regime. As a result, the company is now required to pay Ireland $14.4 billion.
Ireland’s ability to successfully attract major technology companies is partly due to its old tax regime, which allowed multinational businesses to reduce their overseas partnerships.