Government reaches agreement on €13bn Apple tax account

06 December, 2017, 00:15 | Author: Natasha Holloway
  • Irish government reaches deal with Apple to collect €13 billion in unpaid taxes

The European Union says Apple Inc.'s (AAPL) tax deal with Ireland allowed the global tech giant to pay near zero on its European profits between 2003 and 2014.

While the appeals are still ongoing, the European Commission ordered Ireland to begin collecting Apple's taxes on January 3, and the organization referred Ireland to the EU Court in October for failing to comply with the deadline.

The money which has now agreed to be paid will be held in a special bank account as both the Irish government and Apple are lodging appeals against the European Commission's ruling.

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UK Service Sector Growth Moderates In November
However, the figure was still well above the key level of 50: any figure below that suggests a contraction in the sector. Even so, November's reading was still significantly weaker than the historical average of 54.6.

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.

The BBC reports that Apple is paying the money into a so-called blocked "escrow" account and that Ireland is in the process of appealing the Commission's decision. The payments are expected to be made in the first quarter of 2018, according to Irish finance minister Paschal Donohoe.

Apple filed an appeal against the Commission's ruling in December 2016, and the company accused outspoken EU Competition Commissioner Margrethe Vestager of using Apple as a "convenient target" to make headlines. Not only is it ethically questionable, the European Commission declared this as state-aid which is illegal.

However, Apple added that it remains confident that the court will overturn the commission's decision after reviewing and reading the evidence they have presented in their defense.

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