Apple Inc. owes billions in back taxes to Ireland

Technology giant Apple, Inc. is in some tax trouble with the European Union (EU), which will end up costing the company billions. On Tuesday, August 30, Apple was ordered to pay up to $13 billion Euros ($14 billion) to Ireland in back taxes.

The ruling is due to an illegal tax agreement between Apple and Ireland from 2003 to 2014. According to the European Commission, this arrangement violated the EU's tax-aid rules. Both Apple and the Irish government believe this ruling to be unfair and plan to appeal the decision. The U.S. Treasury also called these actions unfair, saying they undermine the tax laws of individual nations.


According to a U.S. treasury spokesperson, "The commission’s actions could threaten to undermine foreign investment, the business climate in Europe, and the important spirit of economic partnership between the U.S. and the EU."

The European Commission, however, believes that the tax deal between Apple and the Irish government is a "sweetheart fiscal deal." Like many deals of this type, it allows corporations to sidestep taxes and exploit loopholes in the laws of a friendly nation.

Although this is by far the heftiest back tax penalty so far from the commission, it isn't the first case against a corporation. Last year, for example, Starbucks Corp. was ordered to pay 30 million Euros ($33.3 million) to the Dutch government. Additionally, investigations are currently underway regarding Amazon Inc. and McDonald's Corp and their tax deals with Luxembourg as well as Google's parent company Alphabet Inc's deal with the U.K.

No Comments

Leave a comment
Comment Information

Contact Kundra and Associates Today

Please call our offices at 301-424-7585 or fill out the form below to arrange a confidential consultation.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Email Our Attorneys

Rockville Office
110 North Washington Street
Suite 406
Rockville, MD 20850

Phone: 301-424-7585
Fax: 301-424-7047
Rockville Law Office Map

Washington, D.C. Office
1025 Connecticut Avenue NW
Suite 1000
Washington, DC 20036

Phone: 301-424-7585
Fax: 301-424-7047
Map & Directions

Mumbai, India
C/o Anmol Sekhir Consultants Pvt. Ltd.
Chartered Accountants
3rd Floor, Sahakar Bazar
Opposite Railway Station
Bandra (West), Mumbai, India 400-050

Map & Directions