Apple Will Start Paying Back Taxes to Irish Government Next Month Amid Legal Battle With European Regulators

Apple will start paying 13 billion euros in back taxes to the Irish government from May, according to the Financial Times, nearly two years after the European Commission ruled that the company received illegal aid from the country that saw its tax bill significantly reduced over the past few decades.

Apple EU
As expected, the report states that Apple and the Irish government have reached an agreement to set up an escrow account to hold the money while both sides appeal the August 2016 ruling in Europe's highest court. Once the amount has been received in full, additional interest payments will be calculated.

Ireland's finance minister Paschal Donohoe today said the appeal process is likely to begin in the fall, according to Reuters.

Ireland is required to hold the funds in escrow until the legal process is completed, according to the report. Apple previously said the amount will be reported as restricted cash on its balance sheet once it begins making payments.

For background, the European Commission said the Irish government gave Apple unfair advantage 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, but Apple says there are "fundamental errors" in the findings.

Apple CEO Tim Cook previously called the decision "total political crap" and said Apple pays all of the taxes it owes based on the laws of each country in which it operates. Likewise, the Irish government said it did not give favorable tax treatment to Apple and added that it "does not do deals with taxpayers."

Apple expects its appeal with the European Union's highest courts to take several years, but it is confident the European Commission's decision will be overturned, in which case the 13 billion euros would be returned to the company.

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

otternonsense Avatar
46 months ago
Good. I wonder if Timmy will tweet anything inspirational about that.
Score: 19 Votes (Like | Disagree)
Naraxus Avatar
46 months ago
"Apple CEO Tim Cook previously called the decision "total political crap ('https://www.macrumors.com/2016/09/01/tim-cook-tax-total-political-crap/')" and said Apple pays all of the taxes it owes based on the laws of each country in which it operates"

Good old Tim Cook, the Chairman and CEO of Doublespeak. Yes, you do pay all of what you're "legally obligated" to pay but when you intentionally shift money around and extort "concessions" that's not paying your fair share. It's called tax evasion & tax avoidance.
Score: 17 Votes (Like | Disagree)
tbobmccoy Avatar
46 months ago
Are there not limits to how far back Apple can be held accountable?
1991, that was over 25 years ago.
Not every country has statutes of limitations, nor on every crime. Additionally, Apple has been a big tax evader; I hope they have to pay up for all the taxes they've tried to escape!
Score: 15 Votes (Like | Disagree)
jozero Avatar
46 months ago
I wonder how this money will be spent once it's turned over. I'm sure some worthy cause. :rolleyes:
Yup. Likely ridiculous things like free health care, hospitals, roads, food programs, schools, and services.

I like Apple as much as the next macrumor visitor but this junk the big companies pull turns my stomach.

If the tax scheme is a convoluted mess of techniques involving an army of accountant and lawyers does it seem right to you? Are you afforded the same tricks and schemes?
Score: 15 Votes (Like | Disagree)
Bigsk8r Avatar
46 months ago
"Apple CEO Tim Cook previously called the decision "total political crap ('https://www.macrumors.com/2016/09/01/tim-cook-tax-total-political-crap/')" and said Apple pays all of the taxes it owes based on the laws of each country in which it operates"

Good old Tim Cook, the Chairman and CEO of Doublespeak. Yes, you do pay all of what you're "legally obligated" to pay but when you intentionally shift money around and extort "concessions" that's not paying your fair share. It's called tax evasion & tax avoidance.
Tax evasion would be evading taxes legally applied. They have never been proven to have done that.

Tax avoidance is due diligence to structure the companies investments and cash flow for maximum gain and minimum expense. In other words... smart business.
Score: 13 Votes (Like | Disagree)
alexgowers Avatar
46 months ago
This will never leave Ireland. Keep Brussels away from it !!! ;)
The EU are the ones forcing Ireland to take it? You can't give illegal state aid for kick backs under EU law and not expect the EU not to enforce the rules. But guess what Apple have picked Jersey as their TAX sinkhole backdoor now so Ireland won't have to deal with being a haven anymore.
Score: 8 Votes (Like | Disagree)

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