Ireland's Economy
The Apple Tax Case
How the EU ruled in 2016 that Ireland gave Apple illegal tax benefits, why Ireland fought the ruling, and how the EU's top court ordered 13 billion euros paid in 2024.
In 2016, the European Commission ruled that Ireland gave Apple illegal state aid.
The ruling
- Irish tax rulings let Apple pay very low tax on European profits, reportedly as low as 0.005 percent in one year.
- The Commission ordered Ireland to recover 13 billion euros plus interest.
Ireland’s position
- Ireland appealed, arguing it hadn’t given special treatment and wanted to protect its reputation with investors.
- A lower EU court sided with Ireland in 2020.
Final ruling
- In September 2024, the Court of Justice of the EU ruled against Apple and Ireland.
- Ireland received about 14 billion euros from escrow.
Using the money
Ireland directed the windfall largely towards infrastructure like housing and water.
Lesson
Tax deals with multinationals face EU competition law limits.
The unwanted windfall
Ireland fought for years not to receive 13 billion euros, fearing it would scare investors, before the court ordered the payment.
Thinking countries always want more tax revenue
Ireland fought the Apple ruling to protect its investment reputation.
Key takeaways
- The EU ruled in 2016 that Ireland gave Apple illegal state aid.
- Ireland appealed, winning in 2020.
- The EU's top court ruled against Apple in September 2024.
- Ireland received about 14 billion euros.
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