EU Court Cancels Order for Apple to Pay 13 Billion Euro in Unpaid Taxes

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The General Court of the European Union (EU) has ruled to annul the decision by the EU Commission ordering Apple Inc. of the United States to pay 13 billion euros (approximately 17.9 trillion KRW) in back taxes.

According to foreign media including AFP on the 15th (local time), the EU General Court stated that Apple does not need to pay the 13 billion euros in taxes demanded by the EU Commission. The court explained that the EU Commission was mistaken in claiming that Apple selectively received economic benefits and state aid.

Previously, in 2016, the EU Commission ordered the Irish government to recover 13 billion euros in back taxes plus interest totaling 14.3 billion euros from Apple, stating that the tax benefits Apple received in Ireland violated EU state aid rules and were illegal. Accordingly, Ireland collected the back taxes from Apple in 2018.

Subsequently, the Irish government filed a lawsuit against the EU Commission. If the EU Commission objects to this ruling, it can appeal to the Court of Justice of the European Union (ECJ), the highest court of the EU. The taxes paid by Apple are currently held in a designated account until the court's final decision. This ruling is expected to deal a blow to the EU Commission's efforts to create a fair competitive environment by preventing low taxes for multinational corporations within the 27 EU member states.