The European Court of Justice has ruled in favor of the European Commission in a high-profile tax battle with Apple, ordering Ireland to recover €13bn in “illegal” tax breaks given to the tech giant. This decision supports the Commission’s efforts to crack down on favorable tax deals for multinationals.
The ruling overturns a previous decision by a lower court that had annulled the Commission’s 2016 decision. This victory for the EU competition chief, Margrethe Vestager, is seen as a win for tax justice and European citizens. Vestager has been known for taking on powerful multinationals over tax issues, and this ruling is a significant development in her efforts to address tax avoidance.
The case against Apple began in 2016 when the Commission ordered the tech giant to pay back billions in unpaid taxes. Apple had previously challenged the Commission’s decision in a lower court, but this decision has now been overturned by the ECJ. Apple has denied any wrongdoing and maintains that it pays all the taxes it owes.
In a separate ruling, the ECJ upheld a €2.4bn antitrust fine against Google for favoring its own online shopping services. Google expressed disappointment with the ruling but stated that they had made changes to comply with the Commission’s decision in 2017.
Overall, these rulings are significant in the ongoing efforts to hold large companies accountable for their tax practices in Europe. The Irish government has stated that it will respect the court’s decision and has already made changes to its corporate tax rules.
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