Apple Inks $15B Deal with Ireland To Clear Up Back Taxes

The European Commission ruled in 2016 that Apple must reimburse the Irish state €13 billion in back taxes

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. Like other firms, Apple made use of Ireland to help reduce its tax bills, and this is something that the European Commission took exception to.

To view the full article, register now. Dublin indicated the the collection was stalled due to negotiations over the escrow account, set to hold the dues while the decision is appealed in court.

Not just Apple, Amazon was also ordered to repay $293 million in back taxes after the European Commission said it had been given an unfair tax deal in Luxembourg.

Apple released a statement saying they will dispute the latest ruling, arguing they've followed the rule of tax law to the letter.

"The Commission's case against Ireland has never been about how much Apple pays in taxes, it's about which government gets the money". 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".

Ireland now has one of the lowest corporate tax rates in Europe, asking for just 12.5 percent of big business profits. The Government has denied favouring Apple and has joined the company in appealing the original ruling.

While both have appealed the decision, the money Apple owes will be put in escrow while everything is being hashed out - but it will start being paid.

Apple also said it remained "confident" that the European Union court would "overturn the Commission's decision once it has reviewed all the evidence".

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