The Irish government has reached an agreement with Apple to start collecting the $15bn tax they owe, reports The Guardian.
The EU commission ruled in August 2016 that Apple must pay the Irish state a record $15bn for unpaid taxes over a number of years. This ruling stated that the tax benefits granted to Apple were unfair as they allowed them to pay significantly less tax than other businesses. Ireland did not ask for this tax as of the huge economic success that was brought to them by being a low tax entryway for multinational businesses to access the EU, they are worried that this new case will damage its attractiveness to firms.
“We expect the money will begin to be transmitted into the account from Apple across the first quarter of next year” – finance minister Paschal Donohoe
Although Apple and Dublin continue to deny this ruling from 2016, Apple is now beginning to pay the back tax, the biggest case in a European crackdown on common tax practices of American technology companies. The payments will be paid into an escrow account as the Irish government continues to appeal to the EU courts.
Under an agreement signed on Tuesday between Apple and the Irish finance minister, Apple will pay a large initial sum next month and will then begin paying out €1bn ($1.2bn) in several installments throughout September.
The money will be invested in an effort to ensure a good financial return for Apple should the court appeals succeed and the funds returned to the company. Apple has since changed its tax structure but remains a large investor in Ireland.