Tuesday, December 5, 2017
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.
Irish Finance Minister Paschal Donohoe told reporters that the Government has "now reached an agreement with Apple in relation to the principles and operation of the escrow fund." He added that the Government expects that "the money will begin to be transmitted into the account from Apple across the first quarter of next year."
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."
Both the Irish Government and Apple have appealed the Commission's ruling. 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.
The European Commission estimated the amount of illegal state aid to be recovered by the Irish authorities to be around EUR13bn, plus interest. The deadline for Ireland to recover the money expired in January 2017. In October, the Commission referred Ireland to the EU Court of Justice for its failure to do so.
Earlier this month, Irish Prime Minister Leo Varadkar said that he did not "want to be in a situation where the Irish Government has to take Apple to court because the European Commission is taking the Irish Government to court."