European Commission Rules Apple Received Illegal State Aid From Ireland, Owes Billions in Back Taxes

EU-apple-taxThe European Commission on Tuesday will rule that Apple received illegal state aid from Ireland, according to a 130-page judgment known by Financial Times.

Competition commissioner Margrethe Vestager circulated the final ruling to her counterparts in the EU’s executive branch only on Monday morning, deploying a fast-track procedure in a bid to minimize leaks. The usual notice period is two weeks.

The ruling follows a three-year investigation into Apple's tax arrangements in Ireland, where it has reportedly paid around 2% or less in taxes compared to the country's headline 12.5% corporate tax rate.

The commission's ruling asks Dublin to raise a new tax assessment on Apple, which could have to restate its accounts as a result of the ruling, according to the report. One area of focus is Apple's tax arrangements for its intellectual property assets, which is "a hotly disputed area likely to lead to a large claim for back taxes."

The ruling means Apple could owe several billions of euros in back taxes. JPMorgan estimated the company could be forced to pay up to 19 billion euros ($21.2 billion) in back taxes, although a previous study placed the figure around $8 billion, and some analysts believe the amount could be a comparatively lower $1 billion.

Europe's competition commissioner Margrethe Vestager will provide an actual estimate of Apple's potential tax bill when the European Commission's findings are publicly released on Tuesday, according to the report.

Apple declined to comment on the matter, reiterating that the company fully complies with international tax law and that it is the largest taxpayer in the world. Apple said last month that both the company and Ireland would appeal any unfavorable ruling in European courts.

Apple joins the ranks of Starbucks, Fiat Chrysler, Amazon, Google, IKEA, and McDonald's as one of several large corporations accused of tax avoidance in Europe recently. Starbucks in particular is currently appealing its case in Netherlands, where it was ordered to pay as much as 30 million euros in back taxes.

Last week, the U.S. Treasury department warned that an adverse ruling against Apple could "set an undesirable precedent." It also said the European Commission is becoming a "supranational tax authority," going beyond acceptable enforcement of competition and state aid law and singling out U.S. companies.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Popular Stories

Tim Cook Rainbow

Apple Event in October? Here's What to Expect

Monday September 29, 2025 9:31 am PDT by
Apple's annual iPhone event is in the rearview mirror, but rumors suggest the company plans to release a handful of additional products before the year ends. Will there be another Apple event this October? We discuss the possibility below. Apple in October Apple's most recent October events were in 2021 and 2023. In 2022 and 2024, Apple did not host an October event. Instead, it...
apple wallet drivers license feature iPhone 15 pro teal 1

Apple's iPhone Driver's License Feature Now Available in 11 U.S. States

Tuesday September 30, 2025 6:40 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Apple recently revealed that the feature would soon be available in North Dakota, and starting today, the feature has officially gone...
maxresdefault

New iPad Pro With M5 Chip Leaked in Unboxing Video

Tuesday September 30, 2025 8:39 am PDT by
An apparent unboxing video for an unannounced iPad Pro with the M5 chip was uploaded to YouTube today by Russian channel Wylsacom. The same YouTube account leaked the 14-inch MacBook Pro with the M4 chip before it was announced by Apple last year, so this is likely a legitimate leak. Based on the box shown in the video, this appears to be a 13-inch iPad Pro with an M5 chip, 256GB of...
fcc vision pro leak

FCC Accidentally Leaks Apple's Next Vision Pro

Tuesday September 30, 2025 3:48 pm PDT by
The United States Federal Communications Commission (FCC) has seemingly confirmed Apple's work on an updated version of the Vision Pro headset. One of several documents the FCC shared today references an Apple-designed "Head Mounted Device" with a model number of A3416. An included image confirms the device is a Vision Pro. The FCC's uploads are transmission tests, SAR test reports, and...
iOS 26

Apple Releases iOS 26.0.1 With Fixes for Wi-Fi, Cellular, and Camera Issues on iPhone 17 Models

Monday September 29, 2025 10:12 am PDT by
Apple today released iOS 26.0.1 and iPadOS 26.0.1, the first updates to the iOS 26 and iPadOS 26 operating systems that came out earlier this week. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. According to Apple's release notes for the update, iOS 26.0.1 addresses a bug that could cause aberrations in...
macbook pro prime day 2025

FCC Leaks Upcoming MacBook Pro and More

Tuesday September 30, 2025 1:58 pm PDT by
The United States Federal Communications Commission has confirmed Apple's work on a new version of the MacBook Pro and several other products, leaking details on the devices ahead of launch. The FCC published documents that reference model numbers that do not correspond with existing devices. A3434, for example, references an unreleased MacBook Pro, while other numbers are likely for...
space black mbp

Here's Every New Apple Product That Leaked Yesterday

Wednesday October 1, 2025 8:27 am PDT by
A handful of upcoming Apple products leaked yesterday, through a combination of YouTube videos out of Russia and U.S. Federal Communications Commission (FCC) documents that were released, despite Apple's confidentiality requests. The leaked products include an iPad Pro with an M5 chip, as well as updated MacBook Pro and Apple Vision Pro models. All of these devices had already been rumored...
Apple MacBook Pro M4 hero

New MacBook Pro Nears Mass Production, But Four Bigger Upgrades Expected Next Year

Sunday September 28, 2025 2:08 pm PDT by
Apple's next MacBook Pro models will enter mass production soon, according to the latest information shared by Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman said he continues to believe the new MacBook Pro models will be released at some point between late 2025 and the first quarter of 2026, meaning they should be available to order by March at the latest. Apple often...
iOS 26

Apple Continues to Prepare iOS 26.0.1 With Multiple Bug Fixes Expected

Sunday September 28, 2025 1:30 pm PDT by
Apple is preparing to release iOS 26.0.1, according to a private account on X with a proven track record of sharing information about future iOS versions. The account initially said iOS 26.0.1 would have a build number of 23A350, but they now expect the update to have a build number of 23A355. This suggests that the software update will include more bug fixes or changes than initially...
Home Hub Command Center with Dome Base Feature

Apple Working on All-New Operating System

Thursday September 25, 2025 1:11 pm PDT by
Apple is developing an all-new operating system codenamed "Charismatic," according to Bloomberg's Mark Gurman. Apple smart home hub concept based on rumors This is likely Apple's long-rumored "homeOS" operating system. In a report last month, Gurman said both Apple's rumored smart home hub in 2026 and tabletop robot in 2027 will run the new operating system. He said the software platform ...

Top Rated Comments

leroypants Avatar
119 months ago
Time for Apple to pay the Taxman.

Attachment Image
Score: 27 Votes (Like | Disagree)
needfx Avatar
119 months ago
Good job EU, I sincerely hope it is in the 21B neighbourhood, even though I am an apple fan.
2% taxation is ridonculous
Score: 27 Votes (Like | Disagree)
ozaz Avatar
119 months ago
world war III won't involve bombs - its going to be a war of taxes. So I assume the European union wants the U.S. to raise taxes on European companies doing business here. Who ultimately will be the ones hurt - us the consumers. Thank you EU for another of your moronic decisions. No wonder England left.
Which European companies get away with 2% tax in the US?
Score: 24 Votes (Like | Disagree)
Cineplex Avatar
119 months ago
Good! I hope it drains the cash reserve enough for them to actually make good products again. If your not sitting on a large pile of cash...you might not be able to risk selling Macs with 3 year old tech in them for a premium. Timmy might actually have to put some thought into product design and not release the same iPhone every year. I really hope the EU sticks it to them.
Score: 23 Votes (Like | Disagree)
NT1440 Avatar
119 months ago
So, consumers should pay it instead of shareholders?
Hi, welcome to America, you must be new here. ;)
Score: 21 Votes (Like | Disagree)
needfx Avatar
119 months ago
But that's just it, they are earnings. Consumers didn't have to give them their money but Apple created a superior product and earned the profit. While I agree "loopholes" should be closed, you need to be careful eliminating the incentive to innovate.
2% taxation is ridiculous. period
Score: 17 Votes (Like | Disagree)