Apple To Be Charged $15 Billion As Back Tax By Ireland

  • Apple To Be Charged $15 Billion As Back Tax By Ireland

Apple To Be Charged $15 Billion As Back Tax By Ireland

Ireland expects the U.S. iPhone maker to start paying billions in back taxes, after the European Union said in 2016 the money was the result of Apple receiving unfair tax incentives and launching a lawsuit against Ireland.

The European Commission ruled in August 2016 that the iPhone maker must reimburse the Irish state a record 13 billion euros to make up for what it considered to be unpaid taxes over a number of years.

To view the full article, register now. The payments are expected to be made in the first quarter of 2018, according to Irish finance minister Paschal Donohoe. The Government has denied favouring Apple and has joined the company in appealing the original ruling.

The Wall Street Journal reported this morning, however, that Ireland will begin collecting the sum "as soon as early next year" once the two sides agree to the terms of an escrow fund for the money. While one might wonder why the Irish government might turn up its nose at $20 billion, by offering annual tax rates as low as 0.005 per cent for over a decade, Ireland essentially acted as a tax haven - a status it has used to attract investment and presence by global corporations. However, Dublin as well as Apple continue to contest the European Commission's ruling.

KitGuru Says: Apple may start setting the money for this aside soon, but it seems clear that it still wants to get out of it.

In a statement, Apple said that it remains confident the court will overturn the commission's decision once it has reviewed the evidence.

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