Apple to Pay Ireland Billions in Back Taxes

Apple to Pay Ireland Billions in Back Taxes

Apple to Pay Ireland Billions in Back Taxes

In August in 2016, the European Commission (EC) ordered Apple to pay as much as $14.5 billion in taxes and interest after ruling that a deal with the Irish government illegally granted undue tax benefits to the iPhone vendor. Since then though, it seems that Apple has reached an agreement with Ireland to pay back €13 billion in back taxes.

The money which has now agreed to be paid will be held in a special bank account as both the Irish government and Apple are lodging appeals against the European Commission's ruling.

"We expect the money will begin to be transmitted into the account from Apple across the first quarter of next year", Donohoe said and added that the government was now seeking an investment manager and custodian to operate the fund.

Back in 2016, the European Union ordered Dublin to retrieve billions of euros in back taxes.

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.

Ireland's Department of Finance called the move "extremely regrettable", saying that it had already been making progress toward dealing with "the unprecedented recovery amount" it had to collect from Apple.

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. The Cupertino, Calif. -based tech company said in a statement that it remains confident the court will overturn the ruling once evidence has been reviewed.

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