Time for Apple to pay its dues
12 September 2024
Apple paid just 0.005% in corporate tax between 2003 and 2014 thanks to Ireland's illegal tax breaks, but now they're paying up. Following the world's longest antitrust case, Apple owes the Irish government €13.8 billion. That's 14% of this year's government spending, or €2,700 per person.
It is an unexpected windfall for the Ireland, which initially argued Apple didn't owe them any taxes. The country granted Apple tax benefits eight years ago, violating its own state-aid laws, as it feared damaging its image as a global tech hub. That risk has now diminished, with the majority of Big Tech companies having settled in Ireland.
Ireland isn't alone in helping multinationals dodge taxes; Luxembourg and the Netherlands have faced similar cases after giving tax breaks to Fiat and Starbucks. In one of our longform stories, we explain how to fight that.
The fine is a clear win for the EU, showing its ability to clamp down on these "sweetheart deals" between multinationals and member states. The court also upheld a €2.42 billion fine against Google for unfairly promoting its own service over competitors, part of a broader €8.25 billion in fines over the past decade.
Now the question is: what will the money be used for?
 | Ciara Boulman Why would a country break its own laws to help a multinational evade billions in taxes? For Ireland, it was a strategic gamble. Apple's arrival in the 1980s came at a time of high unemployment and emigration. The government gave companies tax breaks in the following decades, hoping that those short-term losses would be outweighed by long-term gains: jobs, economic growth, and a worldwide reputation as a tax haven. |
〉https://www.irishtimes.com/business/2024/09/10/apple-tax-case-ruling-ireland-european-court-of-justice-13-billion/">Understanding the final decision
〉https://www.europeancorrespondent.com/article?s=A-new-Gilded-Age">Understanding Ireland's relationship with Big Tech
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