Apple Begrudgingly Agrees to Pay Ireland Nearly $15 Billion in Back Taxes

Chelsea West
December 6, 2017

The Ireland Department of Finance announced it has reached an agreement with Apple Inc.to put almost $15 billion in escrow while its dispute with the European Commission over alleged unpaid taxes proceeds through the courts.

Paschal Donohoe, Ireland's finance minister, said that Apple is expected to begin funnelling money into the fund during the first quarter of 2018.

However, last year, the Commission came to the ruling that this is an example of illegal state aid and threatened Apple with harsh consequences if it didn't cough up $13 billion in owed taxes.

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The money is going to start being paid in early 2018, but in a statement, Apple said it remained confident that the General Court of the European Union will "overturn the Commission's decision once it has reviewed all the evidence".

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In fact, the European Commission had ordered the government of Ireland to collect the "back taxes" only after concluding that two Irish tax coding permitted by Apple, that is to pay less tax than other businesses.

Apple has made a string of investments in the country over the last few years, and the Irish Government fears that the tax bill will affect jobs.

However, Apple added that it remains confident that the court will overturn the commission's decision after reviewing and reading the evidence they have presented in their defense.

Both Apple and Ireland have argued against the ruling. The deal had allowed Apple to pay an effective corporate tax rate of one percent on its European profits in 2003, down to as low as 0.005 percent in certain years, according to Vestager.

Other reports by TheSundaySentinel

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