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Europe's highest court concluded a decade-long legal battle by ruling that Apple Inc (NASDAQ:AAPL) must pay €13 billion ($14.4 billion) in back taxes to Ireland.

The charge, estimated to be around $10 billion, is expected to substantially increase Apple's effective tax rate for the quarter.

According to the company's 8-K filing, this could result in approximately a 10% impact on its earnings per share for the fiscal year 2024.

"Apple generated ~$100Bn free cash flow in FY2023 and we view the news as not material to our thesis," Citi analyst Atif Malik said in a note.

The company had already placed €12.7 billion, including interest, into an escrow account by September 2023. These funds were set aside and restricted from general use until a final decision was reached on the tax case.

"This has been a long, drawn out case and the final impact while not ideal, does not impact our fundamental valuation of Apple," Amit Daryanani, added.

Apple shares fell 0.5% during New York's Tuesday session. 

This content was originally published on http://Investing.com


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