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
85 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
85 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
85 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
85 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
85 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
85 months ago
Apple should pay what is due, like any other corporation.
Score: 10 Votes (Like | Disagree)

Popular Stories

Apple Vision Pro 2 Feature 2

Apple Reportedly Suspends Work on Vision Pro 2

Tuesday June 18, 2024 8:17 am PDT by
Apple has suspended work on the second-generation Vision Pro headset to singularly focus on a cheaper model, The Information reports. Apple was widely believed to have plans to divide its Vision product line into two models, with one "Pro" model and one lower-cost standard model. The company is said to have been deprioritizing the next Vision Pro headset over the past year, gradually...
apple watch series 9 display

Kuo: Apple Watch Series 10 to Get Larger Screen and Thinner Design

Monday June 17, 2024 1:20 am PDT by
This year's Apple Watch Series 10 will be thinner and come in larger screen sizes than previous models, according to Apple analyst Ming-Chi Kuo. In his latest industry note -10-and-98075c44ce92">shared on Medium, Kuo said the screen size options on the next-generation Apple Watch will increase from 41mm to 45mm, and from 45mm to 49mm, while being encased in a thinner design. For reference,...
2022 back to school apple feature

Apple's 2024 Back to School Sale Launching This Week

Monday June 17, 2024 12:27 pm PDT by
Apple will launch its annual Back to School promotion for university students in the United States and Canada this week, according to Bloomberg's Mark Gurman. Apple's back to school sales provide students with a free Apple gift card when purchasing a Mac or an iPad, and this year's promotion could help Apple push the new M2 iPad Air and M4 iPad Pro models. Last year, Apple offered U.S....
Apple Pay Later feature 1

Apple Discontinuing Apple Pay Later

Monday June 17, 2024 11:44 am PDT by
Apple is discontinuing Apple Pay Later, the buy now, pay later feature that it just launched last October. Apple Pay Later is being discontinued as of today, but people who have existing Apple Pay Later loans will be able to continue to pay them off and manage them through the Wallet app. Apple announced plans to end the feature in a statement provided to 9to5Mac, which also notes that...
iOS 18 CarPlay Feature

iOS 18 Adds These 5 New Features to CarPlay

Thursday June 13, 2024 7:44 am PDT by
Apple did not mention CarPlay during its WWDC keynote this week, but iOS 18 includes a handful of new features for the in-car software. Overall, there is not a whole lot new for CarPlay on iOS 18, with changes seemingly limited to the Messages and Settings apps so far. Below, we recap everything new for CarPlay on iOS 18. New for CarPlay on iOS 18 1. Contact Photos in Messages App...
iPod Nano vs iPod Pro Ad Feature 1

Apple Developing Thinner MacBook Pro, Apple Watch, and iPhone

Monday June 17, 2024 2:22 am PDT by
Apple intends to slim down the MacBook Pro, Apple Watch, and iPhone, with the new ultra-thin M4 iPad Pro a sign of the company's new design trajectory, according to Bloomberg's Mark Gurman. When the M4 iPad Pro was unveiled last month, Apple touted it as the company's thinnest product ever, and even compared it to the 2012 iPod nano to emphasize its slim dimensions. Writing in the latest ...
watchOS 11 Thumb 2 1

watchOS 11 Supports Automatic Nap Detection

Monday June 17, 2024 4:05 pm PDT by
watchOS 11 appears to include a new feature that allows an Apple Watch to automatically detect and record when you're taking a nap. As shared on Reddit, an Apple Watch owner took a nap and was able to see the sleep data recorded in the Health app, despite not putting the device in Sleep Mode. Right now, the Apple Watch only tracks and records sleep when it is in Sleep Mode, and there is no...