Oxfam Hails Court Ruling Against Apple's Tax Avoidance

The European Court of Justice (ECJ) has ruled that Apple must pay €13 billion ($14.4 billion) in back taxes to Ireland, upholding a 2016 European Commission decision that the tech giant received illegal state aid from the Irish government in the form of favorable tax deals.

• Oxfam, a charity campaigning against tax havens, celebrated the judgment as a "huge win for European citizens and tax justice."
• The ruling exposes the "EU tax havens' love affair with multinationals," according to Chiara Putaturo, an EU tax policy adviser at Oxfam.
• Putaturo stated that while Ireland will be forced to recover the €13 billion from Apple, the case has not outlawed the use of "sweetheart tax deals" in the EU.

Apple's Illegal Tax Advantages in Ireland

The European Commission found that for over 20 years, Apple enjoyed illegal tax advantages in Ireland, constituting state aid.

• The case relates to tax deals the Irish authorities struck with Apple in 1991 and 2007 to encourage the company to headquarter two European subsidiaries in the country.
• Other companies were not offered the same favorable terms, leading the European Commission to accuse Ireland of giving Apple a "selective advantage."

Ireland's Defense and Impact on Its Tax Reputation

The Irish government stated that it respects the court's decision but claims that the tax agreements in question are no longer in force, as Ireland has since introduced changes to its tax regime.

• Ireland has long been scrutinized for allegedly providing a tax haven for US firms, with former US President Donald Trump vowing to bring "trillions of dollars" in tax revenues back from countries like Ireland.
• According to Stephen Daly, a reader in tax law at King's College London, the ECJ decision is "not good for Ireland Inc.," as the country has tried to position itself as providing fair tax rules.

Apple's Reaction and Ongoing Tax Debates

Apple expressed disappointment with the decision, stating that it has never received a special deal and always pays the taxes it owes.

• The company claimed that the European Commission is "trying to retroactively change the rules and ignore that, as required by international tax law, our income was already subject to taxes in the US."
• Oxfam's Putaturo emphasized that the ruling does not solve the root issue, as "EU tax havens can still make sweetheart tax deals with big multinationals."
• The duty to stop such practices rests on EU policymakers, who have "turned a blind eye to tax havens within their borders and the harmful race to the bottom that countries like Ireland are instigating," according to Putaturo.