Apple has won a landmark $21.2 billion (13 billion euros) court case against the European Union over claims of unpaid back taxes between 2003 to 2014.
The news comes after the European Commission ordered Apple to remedy the notable underpayment of tax on profits across Europe.
The EU Commission alleged Apple had an illegal ‘sweetheart tax deal’ with Ireland, however, the General Court has ruled it did not succeed in proving to the required legal standard that the company has been granted a selective economic advantage.
The Commission claimed Apple used two Irish incorporated shell companies to report European-wide profits at rates under 1%.
Ireland has since welcomed the General Court’s ruling, asserting it did not offer special treatment to the Cupertino giant, nor granted state aid.
Some local tech commentators speculate Apple Australia could also use its Irish subsidiary for tax benefits.
The European Union has sought to better level the playing field amongst its 27 countries to ensure ‘special deals’ (as that alleged between Apple and Ireland) are eradicated.
The Commission has further ramped up its plans to combat tax fraud, noting the economic impact of the coronavirus pandemic.
“In times like these when we are passing multi-billion euro economic stimulus packages, we cannot afford to waste a single cent in tax revenue”, said European Union legislator Markus Ferber.
The Trump administration previously criticised the European Union for unduly targeting American companies.
