Apple will begin paying Ireland €13 billion in back taxes

Apple has made a deal with Ireland to pay its back taxes but the money will be held in escrow while it appeals an EU ruling

Apple has made a deal with Ireland to pay its back taxes but the money will be held in escrow while it appeals an EU ruling

Furthermore, the Commission ordered Ireland to collect back taxes for the years from 2003 to that of 2014, amounting to as much has a whooping amount of 13 billion euros plus interest of the long number of years. Like other firms, Apple made use of Ireland to help reduce its tax bills, and this is something that the European Commission took exception to.

Not just Apple, Amazon was also ordered to repay $293 million in back taxes after the European Commission said it had been given an unfair tax deal in Luxembourg.

As a result of both parties contesting the ruling, the matter is now awaiting a European Court of Justice decision, and the money will be paid into the escrow account in the interim.

As The Wall Street Journal reports, Irish Finance Minister, Paschal Donohoe, said today that he is expecting the money from Apple to begin going into the account in the first quarter of 2018. According to the EU, the tax deal allowed Apple to pay nearly nothing in tax on its European profits between 2003 and 2014.

Both Apple and Ireland have argued against the ruling.

In September 2016, a European Commission investigation concluded that two rulings provided by the Irish Government had "substantially and artificially lowered the tax paid by Apple in Ireland since 1991".

"We have a dedicated team working diligently and expeditiously with Ireland on the process the European Commission has mandated", Apple said in a statement.

Apple indicated it didn't see the arrangement as a settlement, though, and vowed to continue to fight to have the judgment overturned.

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