Apple Stock Drops on News of Hefty Irish Tax Bill: What to Know
Apple stock is down Tuesday after the European Union ruled the tech giant must pay Ireland 13 billion euros in back taxes. Here's what that means for investors.


Apple (AAPL) stock is modestly lower Tuesday after the European Court of Justices ruled that the tech giant must pay 13 billion euros (about $14.4 billion) in back taxes to Ireland.
The ruling stems from a 2014 investigation by the European Commission into Apple's tax payments in Ireland, according to CNBC. This led to a 2016 ruling that Apple received "illegal" tax benefits from Ireland over the course of two decades. After a series of appeals, the ruling was confirmed, which ordered Ireland to recover the back taxes.
"This case has never been about how much tax we pay, but which government we are required to pay it to," an Apple spokesperson told CNBC. "We always pay all the taxes we owe wherever we operate and there has never been a special deal. The European Commission is trying to retroactively change the rules and ignore that, as required by international tax law, our income was already subject to taxes in the U.S."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In a filing with the Securities and Exchange Commission (SEC), Apple said it expects to record a one-time income tax charge of up to approximately $10 billion in the fourth quarter of its current fiscal year as a result of the ruling.
Is Apple stock a buy, sell or hold?
Apple stock has slightly lagged the broad market so far this year, up 15.2% on a total return basis (price change plus dividends) vs the S&P 500's 15.8% gain. But Wall Street remains bullish on the Dow Jones stock and isn't too concerned about the company's big tax bill.
Indeed, according to S&P Global Market Intelligence, the average analyst target price for AAPL stock remains at $237.99, representing implied upside of over 9% from current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Wedbush is one of the most bullish outfits on the large-cap stock, which reiterated its Buy rating and $300 price target on Apple after Monday's iPhone 16 reveal.
"Today in Cupertino, Apple launched iPhone 16, which we believe will be the most successful iPhone unit launch in its history, as Apple Intelligence will be the launching pad for the consumer AI Revolution globally," says Wedbush analyst Daniel Ives said in a note yesterday following Apple's September launch event.
Ives adds that the "new era of personalization and how consumers interact with their iPhones has now begun," and he believes this will spark "a renaissance of iPhone growth (high-single-digit growth upside) for Apple over the next 12 to 18 months and drive shares higher with a $4 trillion market cap in 2025." AAPL's current market cap is closer to $3.33 trillion.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
The power and flexibility of 529 savings plans
SPONSORED Today’s 529 plans can be used in more ways—and at more types of schools—making them one of the smartest ways to save for education.
-
Stocks Grind Up to New All-Time Highs: Stock Market Today
UnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
Stocks Grind Up to New All-Time Highs: Stock Market Today
UnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
The 'Nothing Ever Happens' Market: How Stocks React (Or Don't) to Geopolitical Events
Geopolitical events — terrorist acts, wars, or military intervention — can give stocks a jolt. But that doesn't mean your portfolio will take a hit in the long run.
-
I'm a Financial Adviser: You've Built Your Wealth, Now Make Sure Your Family Keeps It
The Great Wealth Transfer is well underway, yet too many families aren't ready. Here's how to bridge the generation gap that could threaten your legacy.
-
Want to Advance on the Job? Showing Some Courtesy and Appreciation Could Help
Two business professors share their insights about the impact of digital communication on the social skills of some in Gen Z and the importance of good manners on the job.
-
Markets Prepare for August Inflation Data: Stock Market Today
Apple CEO Tim Cook is still important, but price action this week is as much about incoming inflation data ahead of next week's Fed meeting.
-
From Job Loss to Free Agent: A Financial Professional's Transition Playbook (and Pep Talk)
The American workforce is in transition, and if you're among those affected, take heart. You have the skills, experience and smarts that companies need.
-
A Financial Planner's Top Five Items to Prioritize When Your Spouse Is Ill
During tough times, it's easy to overlook important financial details, but you'll be so much better off if you take care of these things right now.
-
An Expert Guide to Outsmarting Inflation: Don't Let It Restrict Your Retirement
Inflation is often underestimated when estimating retirement income, education funding or investment returns. These strategies can help preserve your purchasing power and reduce your financial anxiety.