Apple reaches deal with Ireland over $15B tax ruling

Apple strikes interim deal on escrow fund for $15B Irish tax claim

Apple strikes interim deal on escrow fund for $15B Irish tax claim

It's understood that Apple will start paying the €13 billion in back taxes into an escrow account in first quarter of 2018.

Apple has agreed to put the money into an escrow account, although since escrow funds aren't useful as immediate financial products - combined with the fact that Apple still believes it will get that money back eventually after a court ruling - Apple likely wanted to negotiate the terms of the fund.

The government have come to an agreement with Apple for the contested €13 billion tax bill that the company was ordered to pay Ireland.

"Irish Finance Minister Paschal Donohoe made the remarks to reporters Monday ahead of a meeting with EU antitrust chief Margrethe Vestager", reads the report.

As part of the EU's 2016 ruling, it said that the tax arrangements Ireland offered Apple between 1991 and 2007 meant that Apple only had to pay tax rates between 0.0005 percent and 1 percent on all of its European profits right up until 2014. However, the Wall Street Journal reports today that the country will finally start collecting those billions of dollars owed by Apple and it may start doing so early next year.

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

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.