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
58 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
58 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
58 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
58 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
58 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
58 months ago
Apple should pay what is due, like any other corporation.
Score: 10 Votes (Like | Disagree)

Popular Stories

apple ar headset concept 1

Apple's Headset Said to Feature 14 Cameras Enabling Lifelike Avatars, Jony Ive Has Remained Involved With Design

Friday May 20, 2022 6:50 am PDT by
Earlier this week, The Information's Wayne Ma outlined struggles that Apple has faced during the development of its long-rumored AR/VR headset. Now, in a follow-up report, he has shared several additional details about the wearable device. Apple headset render created by Ian Zelbo based on The Information reporting For starters, one of the headset's marquee features is said to be lifelike...
iPhone 14 Purple Lineup Feature

Will the iPhone 14 Be a Disappointment?

Saturday May 21, 2022 9:00 am PDT by
With around four months to go before Apple is expected to unveil the iPhone 14 lineup, the overwhelming majority of rumors related to the new devices so far have focused on the iPhone 14 Pro, rather than the standard iPhone 14 – leading to questions about how different the iPhone 14 will actually be from its predecessor, the iPhone 13. The iPhone 14 Pro and iPhone 14 Pro Max are expected...
sony headphones 1

Sony's New WH-1000XM5 Headphones vs. Apple's AirPods Max

Friday May 20, 2022 12:18 pm PDT by
Sony this week came out with an updated version of its popular over-ear noise canceling headphones, so we picked up a pair to compare them to the AirPods Max to see which headphones are better and whether it's worth buying the $400 WH-1000XM5 from Sony over Apple's $549 AirPods Max. Subscribe to the MacRumors YouTube channel for more videos. First of all, the AirPods Max win out when it comes ...
studio display 3

Apple's Rumored 27-Inch Mini-LED Display Now Said to Launch in October

Friday May 20, 2022 8:07 am PDT by
Apple now plans to release a new 27-inch display with mini-LED backlighting in October due to the Shanghai lockdown, which has resulted in production of the display being delayed, according to display industry consultant Ross Young. In a tweet, Young said Apple is in the process of moving production of the display from Quanta Computer to a different supplier and/or location, resulting in a...
HomePodandMini feature green

Kuo: Apple to Release New HomePod in Late 2022 or Early 2023

Friday May 20, 2022 8:55 am PDT by
Apple is working on an updated version of the HomePod that could come in the fourth quarter of 2022 or the first quarter of 2023, according to Apple analyst Ming-Chi Kuo. Kuo says that there "may not be much innovation in hardware design" for the new HomePod, and there is no word on what size the device will be and if it will be a HomePod mini successor or a larger speaker. Apple would ...
airtag purple

Best Apple Deals of the Week: Save on AirTag, AirPods 3, and iPads

Friday May 20, 2022 8:01 am PDT by
Solid markdowns on the AirTag, AirPods 3, and a few iPad models were introduced this week, and below you'll find all of the best deals of the past few days that are still available to purchase. AirTag Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. What's the...