EU apple taxIn August 2016 the European Commission ruled that Apple must repay 13 billion euros ($15.46 billion) in back taxes dating between 2003 and 2014. According to the EU, the taxes were avoided with the help of sweetheart tax deals from Ireland, and today The Wall Street Journal reports that Apple will now begin paying these back taxes "as soon as early next year."

Ireland's Finance Minister, Paschal Donohoe, reports that Apple and Ireland have agreed to terms of an escrow fund for the money, setting a pace for Apple to begin repaying the taxes in Q1 2018. Apple's payment will sit in the escrow fund while both sides continue to appeal the EU's decision in court.

In October 2017, the EU announced its intention to take Ireland to court for its failure to recover Apple's back tax sum, with Ireland citing the escrow account as the reason why negotiations and repayment were being held up. Now, Donohoe said the next steps will be to determine who operates the escrow account and who manages the fund once Apple begins the repayment process. The EU said that it will only close court proceedings against Ireland once Apple's back taxes are recovered in full.

Ireland will begin collecting €13 billion ($15.46 billion) in back taxes from Apple Inc. as soon as early next year after both sides agreed to the terms of an escrow fund for the money, Ireland’s finance chief said Monday.

In a statement, Apple said, “We have a dedicated team working diligently and expeditiously with Ireland on the process the European Commission has mandated. We remain confident the General Court of the EU will overturn the Commission’s decision once it has reviewed all the evidence.”

The center of the EU's argument is that Irish revenue commissioners gave Apple unfair advantages between 1991 and 2007 by allowing the company to move income from the European market through two "non-resident" head office subsidiaries based in Ireland.

Ireland's government has stated it "fundamentally disagrees" with the EU's analysis of the tax situation, leading to its appeal. For Apple, the company said that the EU made "fundamental errors" in the calculations related to the taxes it owes, arguing that the bulk of the profits during this period are due in the United States. Apple CEO Tim Cook put it more succinctly after the first ruling came out, calling the tax avoidance claims "total political crap."

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Top Rated Comments

MH01 Avatar
99 months ago
What....But but ... so many here told me apple owes nothing .... this must be fake news !!
[doublepost=1512408532][/doublepost]
Taxes are theft.
Yeah.... those roads, infrastructure, schools , hospitals blah blah .... build themselves ;)
Score: 31 Votes (Like | Disagree)
25ghosts Avatar
99 months ago
When a company the size of Apple with the earnings of Apple fight to avoid paying the Tax that we ALL have to pay and pay every day and land IN Jail if we avoid paying, it puts this company and its executives in a seriously unsociable light.

And then publicly stating that they're fighting to avoid it just makes me want to vomit. I pay about 40% of all the earnings I make and with those 60% I purchase an Apple product.

Trying to dodge Tax is synonymous with spitting your neighbor in the face and dancing on his grave.

[Update]
I should add that no one is guilty until proven so. And that my opinion is based upon my (perhaps naive) trust in that the EU would not witch hunt Apple over an amount which in the European Union's global Economy is peanuts.
Score: 19 Votes (Like | Disagree)
6803390 Avatar
99 months ago
Yeah--Good thing Apple is the largest taxpayer in the United States of America. Good thing Apple is the largest taxpayer in the world.
Apple pays just £12m UK tax on £2bn profit: Miserly bill is almost £400million short of the figure tech giant should have paid [full stop]

And who gets to decide the amount Apple should have paid? Ireland broke the rules here (retroactively), not Apple. Besides, do you think even that 12 million would be in Ireland had the tax cut not been there?
I said UK not Ireland. You know the difference, right?
Score: 14 Votes (Like | Disagree)
miniyou64 Avatar
99 months ago

Yeah.... those roads, infrastructure, schools , hospitals blah blah .... build themselves ;)
Because humans can only build things of value when bureaucrats extort their money and decide that for them?
Score: 11 Votes (Like | Disagree)
IbisDoc Avatar
99 months ago
How would you feel next year when the government says you should have been paying 50%, not 40%, and demands that you pay back all those taxes you failed to pay in years prior?
If I had been routing my income through Ireland in order to avoid paying my fair share, I’d suck it up and pay what I rightfully owe.
Score: 10 Votes (Like | Disagree)
Applebot1 Avatar
99 months ago
Apple should pay what is due, like any other corporation.
Score: 10 Votes (Like | Disagree)

Popular Stories

apple tv 4k new orange

New Apple TV Expected Later This Year With These New Features

Saturday July 12, 2025 3:09 pm PDT by
A new Apple TV is expected to be released later this year, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the next Apple TV, according to rumors. Rumors Faster Wi-Fi Support The next Apple TV will be equipped with Apple's own combined Wi-Fi and Bluetooth chip, according to Bloomberg's Mark Gurman. He said the chip supports ...
iphone 16 pro ghost hand

5 Reasons to Skip This Year's iPhone 17 Pro

Thursday July 10, 2025 4:54 am PDT by
Apple will launch its new iPhone 17 series in two months, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 16 New Features

Friday July 11, 2025 12:40 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are only two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:A redesigned Dynamic Island: It has been rumored that all iPhone 17 models will have a redesigned Dynamic Island interface — it might ...
Apple Watch Ultra 2 Complications

Apple Watch Ultra 3: What to Expect

Sunday July 13, 2025 10:30 am PDT by
The long wait for an Apple Watch Ultra 3 is nearly over, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the Apple Watch Ultra 3:Satellite connectivity for sending and receiving text messages when Wi-Fi and cellular coverage is unavailable 5G support, up from LTE on the Apple Watch Ultra 2 Likely a wide-angle OLED display that ...
iphone 16 pro pro max

iPhone 17 Pro Models With BOE Displays Will Be Sold in China Only

Thursday July 10, 2025 11:59 pm PDT by
iPhone 17 Pro and iPhone 17 Pro Max models with displays made by BOE will be sold exclusively in China, according to a new report. Last week, it emerged that Chinese display manufacturer BOE was aggressively ramping up its OLED production capacity for future iPhone models as part of a plan to recapture a major role in Apple's supply chain. Now, tech news aggregator Jukan Choi reports...
top stories 2025 07 12

Top Stories: iPhone 17 Pro Rumors, iOS 26 Beta 3, and More

Saturday July 12, 2025 6:00 am PDT by
The iOS 26 public beta release is quickly approaching, while developers have recently gotten their hands on a third round of betas that has seen Apple continue to tweak features, design, and functionality. We're also continuing to hear rumors about the iPhone 17 lineup that is now just about right around the corner, while Apple's latest big-budget film appears to be taking off, so read on...