The Irish government says that Apple has now paid the full €13.1B ($15.3B) in underpaid tax, along with €1.2B ($1.4B) in interest …
The money has been paid into an escrow fund, where it will remain until legal appeals have been heard. Both Apple and the Irish government have appealed against a ruling that the country offered an illegal ‘sweetheart’ tax deal to the iPhone maker in return for the company basing its European headquarters in the country.
It is Ireland, and not Apple, that was found to have broken the law by offering illegal state aid to a company. The EU ordered the country’s finance ministry to recover the underpaid tax from Apple.
Reuters reports that the sum would be enough to fund Ireland’s health service for a year, but the country’s finance minister insists that the decision will be overturned and the money returned to Apple.
“While the government fundamentally disagrees with the Commission’s analysis and is seeking an annulment of that decision, as committed members of the European Union, we have always confirmed that we would recover the alleged State aid,” Paschal Donohoe said in a statement.
The site reports that investment managers are looking after the cash in the meantime, ensuring that it is put into low-risk investments with a guarantee that the Irish taxpayer would be protected from any losses.
It’s likely to be several years before the appeals reach the European courts.
Photo: Ralph Orlowski/Reuters