The European Court of Justice has decided to set aside a previous ruling against the EU and in favor of Ireland and Apple in a dispute over €13 billion in taxes. This ruling will be referred back to the courts for a new decision. A final judgment is expected in a few months. The disputed taxes have been held in escrow for the last five years after the EU found that two Apple companies enjoyed unfair tax advantages in Ireland, which was considered illegal state aid. However, Ireland and Apple appealed this ruling and won. The court decision is important because the final amount held in the fund will either be returned to Apple or paid to the State. This ruling is part of the EU’s efforts to prevent profit-shifting by large multinational companies. Additionally, a global corporation tax deal has been agreed upon which would see the largest firms pay at least 15% tax on their global profits and would see a portion of Ireland’s multinational taxing rights shift to other countries. The 15% tax is being introduced via the Finance Bill, to take effect from January next year, while the second part of the deal on shifting taxing rights has yet to be finalized.
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