Clifford Chance

The EU's €13 Billion Apple tax recovery order: why it was adopted, its broader context, and initial takeaways

1 September 2016

The European Commission (EC) adopted a decision requiring Ireland to recover up to €13 billion in taxes from Apple Inc. This amount, the highest recovery order ever imposed as a result of a finding of state aid, could grow considerably as a result of interest being applied.  It is not a fine due to be paid to the EU, but the quantum of taxes that in the EC's view Apple should have paid from 2003 to 2014, and which Ireland will now have to claim back. The EC investigation into the advance tax rulings granted to Apple in Ireland has led the EC to conclude that Apple has been benefitting from a tax advantage in breach of EU state aid rules since 1991.

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