Apple agrees to cough up for $15 billion Irish tax bill

Robyn Ryan
December 6, 2017

The European Commission ruled in August 2016 that the iPhone maker must reimburse the Irish state a record 13 billion euros to make up for what it considered to be unpaid taxes over a number of years.

An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties.

The decision leaves me with no choice but to seek Cabinet approval to appeal the decision before the European Courts. The Commission ordered Ireland to collect back taxes for the years 2003-2014, which it estimated to be as much 13 billion euros plus interest.

The Republic of Ireland has been giving Apple a sweetheart deal which has meant in many years the company has been paying an effective tax rate of 1% to as low as 0.005 percent, and the European Union has not been happy about it.

While in Brussels to "update" Vestager on the agreement, Donohoe said Ireland was still contesting the Commission's ruling, but would be "complying with our obligations in terms of collecting the money from Apple".

While both have appealed the decision, the money Apple owes will be put in escrow while everything is being hashed out - but it will start being paid.

The $15,4 billion will start flowing into Irish coffers in Q1 2018, but Apple continues to deny any wrongdoing.

The Irish Finance Ministry said: "These sums will be placed into an escrow fund with the proceeds being released only when there has been a final determination in the European Courts over the validity of the Commission's Decision".

Apple also said that it is "the largest taxpayer in the world" and that it "pays every dollar it owes in every country around the world".

Other reports by VideoGamingPros

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