One year later, Apple agrees to pay Ireland $15B in back taxes

One year later, Apple agrees to pay Ireland $15B in back taxes

One year later, Apple agrees to pay Ireland $15B in back taxes

The European Commission ruled past year that a tax deal that Ireland gave Apple was illegal, and that it owed the country $14.5 billion in back taxes.

"We have now reached agreement with Apple in relation to the principles and operation of the escrow fund", Donohoe told reporters yesterday before a meeting with Vestager.

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Ireland has allowed Apple to pay lower tax rates than other EU nations since the early 1990s, but the European Commission ruled in August 2016 that Ireland's practice was illegal and that Apple must pay the rest of the money it should have been taxed.

Ireland disagreed with the EC's analysis and appealed the decision. Despite Apple not wanting to pay the bill - and the Irish Government not wanting to receive it - the two sides have now come to an agreement that means the money owed will now be collected.

The EU ruling that Ireland offered illegal state aid to Apple, and must recover €13B ($15B) in underpaid taxes, marked the end of a long-running investigation - but not the end of the dispute ... However, Dublin as well as Apple continue to contest the European Commission's ruling.

The Irish Finance Ministry said: "These sums will be placed into an escrow fund with the proceeds being released only when there has been a final determination in the European Courts over the validity of the Commission's Decision".

Corporate tax evasion seriously undermines civil society and has become an increasing focus of the European Union, so it is good to see Apple finally paying up, even if they still plan to claw it back later.

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