Apple to Begin Paying Ireland for Billions in Back Taxes ‘Early Next Year’

Posted in Apple News on 05/12/2017 by Chris Hauk

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Apple will begin paying its 13 billion euro ($15.46 billion) Irish tax bill “as soon as early next year.” The European Commission ruled in August 2016 that Apple must pay the money for back taxes for the period of 2003 to 2014.

Apple to Begin Paying Ireland for Billions in Back Taxes 'Early Next Year'

The Wall Street Journal:

Ireland has said the money collection was held up by negotiations over the escrow account, which will hold the company’s dues while both Apple and Ireland appeal the EU’s 2016 decision in court.

Irish Finance Minister Paschal Donohoe Monday said he expected the flow of money from Apple to begin in the first quarter of 2018 once they complete the tendering processes to determine who would operate the account and who would then manage the fund.

The EU announced in October that it intended to take Ireland to court for its failure to collect the back taxes from Apple. Ireland had claimed the escrow account negotiations had held up the repayments. The next steps will be to decide who will operate and control the escrow fund once Apple begins making payments.

Ireland will begin collecting €13 billion ($15.46 billion) in back taxes from Apple Inc. as soon as early next year after both sides agreed to the terms of an escrow fund for the money, Ireland’s finance chief said Monday.

In a statement, Apple said, “We have a dedicated team working diligently and expeditiously with Ireland on the process the European Commission has mandated. We remain confident the General Court of the EU will overturn the Commission’s decision once it has reviewed all the evidence.”

The EU had argued Irish revenue commissioners had given Apple a “sweetheart deal” that gave them unfair tax advantages, allowing the company to move income from the European market, paying annual tax rates of between 0.005% and 1% on its European profits for over a decade, ending in 2014.


Author

Chris Hauk

MacTrast Senior Editor, and self-described “magnificent bastard,” Chris Hauk owns Phoenix Rising Services and writes for everyone’s favorite “bad movie” website, Big Bad Drive-In.

His first Apple product was an iPod Classic 9 years ago, and he has since added a MacBook Pro, a number of iPads, iPhones, and multiple Apple TVs to his collection.

He lives somewhere in the deep Southern part of America. Yes, he has to pump in both sunshine and the Internet.