Apple agrees to pay Ireland €13bn in back taxes after European Union challenge

Apple agrees to pay Ireland €13bn in back taxes after European Union challenge

Apple agrees to pay Ireland €13bn in back taxes after European Union challenge

In July, Ireland launched a procurement process for an escrow agent/custodian for an escrow account into which the funds would be placed and held until the European courts issue their final ruling on the Government's appeal.

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.

While it may seem the tax rate Ireland sets for Apple is only their own business, Ireland is also a recipient of aid from the European Union, of which they would need less of if they collected more actual tax from the businesses based there.

The Commission ordered Ireland to collect back taxes for the years 2003-2014, which it estimated to be as much as €13bn plus interest.

Congress attacks Modi over internal democracy in BJP
As the Congress embraces "soft" Hindutva in Gujarat, Prime Minister Narendra Modi on Sunday reached out to the Muslim community of the state.

Germany withdraws diplomat from North Korea
Officials insisted the dialogue was not centred on North Korea or anything else in particular. China is North Korea's neighbor and its sole major trading partner.

Manchester United beat Arsenal 3-1 to keep heat on City
Arsenal got back into the match in the 49th when United defender Marcos Rojo tried and failed to play Alexandre Lacazette offside. Even so, Wenger acknowledged Arsenal had only themselves to blame for a loss that effectively ended their title bid.

Ireland and Apple have reached an agreement that will see the technology giant start paying the EUR13bn (USD15.4bn) it is alleged to owe in back taxes.

Now it appears Apple and Ireland have agreed to cooperate, and pay $15.4 billion to the Irish government, all while however still continuing litigating the case.

"We have now reached agreement with Apple in relation to the principles and operation of the escrow fund", Finance Minister Paschal Donohoe said in Brussels in quotes confirmed to AFP by Ireland's finance ministry.

Over a year ago, as Ars reported, the EU's competition chief Margrethe Vestager said that a two-year investigation into so-called sweetheart tax deals in 1991 and 2007 had found Apple guilty of receiving illegal state aid from the Emerald Isle. However, Dublin as well as Apple continue to contest the European Commission's ruling.

Related news

[an error occurred while processing the directive]