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

Marcus Newton
December 6, 2017

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.

The European Commission had ordered Ireland to collect the money after concluding that two Irish tax rulings allowed Apple to pay less tax than other businesses - thus giving them an unfair advantage.

To view the full article, register now.

Ireland had held off collecting the money and the matter was appealed to the EU Court of Justice.

More news: Woods finishes strong with final-round 68 at Hero
More news: Hadi calls on Yemenis to rise up against Houthis after Saleh's death
More news: Prosecutors Are Coming For Martin Shkreli's $2M Wu-Tang Clan Album

The BBC reports that Apple is paying the money into a so-called blocked "escrow" account and that Ireland is in the process of appealing the Commission's decision. This is necessary to defend the integrity of our tax system; to provide tax certainty to business; and to challenge the encroachment of European Union state aid rules into the sovereign Member State competence of taxation.

The Commission in October had routinely initiated proceedings against the Government for its failure to recover the tax, which had been ruled by the Commission as an illegal favouring of the company by the Irish authorities.

Apple is just one of many technology companies whose tax arrangements in Europe have been criticized. Jersey is a self-governing dependency of the United Kingdom, and the island does not charge corporate tax for most companies. At Apple we follow the laws, and if the system changes we will comply.

Apple also said that it is "the largest taxpayer in the world" and that it "pays every dollar it owes in every country around the world".

Other reports by MaliBehiribAe

Discuss This Article