Apple experiences a significant financial setback, losing approximately $10 billion in earnings, as a result of EU judgment
Big tech corporation Apple anticipates a substantial decrease in earnings during this financial year due to a judgment by the European Court of Justice (ECJ). The tech giant informed the stock market in a statement that they might record an extraordinary tax liability in the final quarter of their fiscal year concluding on September 28, 2024. This could lead to a loss of approximately $10 billion.
The ECJ previously decrered that Apple should foot a tax bill worth €13 billion, plus accrued interest. The European Commission had established back in 2016 that Ireland, home to Apple's European base, had unlawfully granted the corporation special tax breaks. As a consequence, the EU nation was obligated to recover the unpaid taxes, along with interest.
Despite the decision getting overturned in 2020, the ECJ has since reversed this ruling. The court now finds that Apple had illegitimately enjoyed tax benefits between 1991 and 2014, and is now required to reimburse the underpaid taxes from 2003 onwards.
In light of the ECJ's recent reversal, Apple now faces another potential tax liability. Other than the initial €13 billion tax bill, the corporation may need to pay additional taxes due to the court's new ruling.
