Ireland recorded a budget surplus of around 7% of modified gross national income in 2024, mainly due to most of a 14 billion-euro ($14.5 billion) back tax bill paid by Apple, according to Reuters.
The country had forecast a surplus of around one-third of that level before a European court order in September that Apple pay the back taxes due to unlawful past tax treatment pushed last year’s general government surplus to 21.9 billion euros. Ireland initially expected to draw down 8 billion euros of the back taxes this year but almost 11 billion euros flowed into the state coffers by the end of December, pushing 2024 corporate tax receipts 63.9% higher year-on-year to 39.1 billion euros, notes Reuters.
The European Commission, Europe’s anti-trust and consumer investigation agency, ruled in 2016 that Ireland, Luxembourg and the Netherlands attracted investment and jobs by helping big companies avoid tax in other countries, including European Union members.
The commission said Ireland was too lenient in rulings it gave to Apple and which helped the company shield tens of billions of dollars in profit from taxation. At 12.5%, Ireland’s corporate tax rate beats the U.S. rate of 35%. However, participating companies don’t pay that 12.5% under the double Irish structure.
As a result, the European Commission ruled that Apple had to pay €13bn (about US$14 billion) in unpaid taxes to Ireland by the European Court of Justice (ECJ).
I hope you’ll help support Apple World Today by becoming a patron. Patreon pricing ranges from $2 to $10 a month. Thanks in advance for your support.
Article provided with permission from AppleWorld.Today