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
79 months ago
Good. I wonder if Timmy will tweet anything inspirational about that.
Score: 19 Votes (Like | Disagree)
Naraxus Avatar
79 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
79 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
79 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
79 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
79 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)

Popular Stories

General Apps Messages

iMessage Down for Some Users [Update: Service Restored]

Thursday May 16, 2024 3:00 pm PDT by
The iMessage service that Apple users to send messages to one another appears to be down for some users, and messages are failing to go out or are taking an extra long time to send. There are numerous reports about the issue on social networks and a spike of outage reports on Down Detector, but Apple's System Status page is not yet reporting an outage. Update: Apple's status page says...
iOS 17

Troubling iOS 17.5 Bug Reportedly Resurfacing Old Deleted Photos

Wednesday May 15, 2024 5:29 am PDT by
There are concerning reports on Reddit that Apple's latest iOS 17.5 update has introduced a bug that causes old photos that were deleted – in some cases years ago – to reappear in users' photo libraries. After updating their iPhone, one user said they were shocked to find old NSFW photos that they deleted in 2021 suddenly showing up in photos marked as recently uploaded to iCloud. Other...
iphone 15 pro max vs iphone 16 pro max

iPhone 16 Pro Max Looks This Much Bigger Beside iPhone 15 Pro Max

Thursday May 16, 2024 4:51 am PDT by
This year's upcoming iPhone 16 Pro Max is expected to get a boost in overall size from 6.7-inches to 6.9-inches, and a new image gives us a good idea of how the current iPhone 15 Pro Max compares to what could be Apple's largest ever iPhone. The image above, posted on X by ZONEofTECH, shows a dummy model representing the ‌iPhone 16 Pro‌ Max alongside an actual iPhone 15 Pro Max. Dummy...
iOS 17

iOS 17.5 Bug May Also Resurface Deleted Photos on Wiped, Sold Devices

Friday May 17, 2024 12:24 pm PDT by
A bug in iOS 17.5 is apparently causing photos that have been deleted to reappear, and the issue seems to impact even iPhones and iPads that have been erased and sold off to other people. A Reddit user wiped an iPad following Apple's guidelines in September of 2023 before selling it off to a friend. That friend updated the iPad to iPadOS 17.5 this week, and began seeing the Reddit user's old ...
oled m4 ipad pro grainy display reports

OLED iPad Pro Users Report 'Grainy' Displays, But It May Not Be a Defect

Friday May 17, 2024 5:57 am PDT by
Some new M4 iPad Pro models are exhibiting a visible static grain pattern across the OLED display, according to several user reports on Reddit (1, 2, 3) and the MacRumors Forums. Image credit: MacRumors user bk215 Users who see the grain generally report that it is most noticeable in dark environments with the display set at a low to medium brightness while viewing content with gray or muted...
Delta Hands On Feature

iPhone Emulators on the App Store: Game Boy, N64, PS1, PSP, and More

Thursday May 16, 2024 12:45 pm PDT by
In April, Apple updated its guidelines to allow retro game emulators on the App Store, and several popular emulators have already been released. The emulators released so far allow iPhone users to play games released for older consoles from Nintendo, Sony, SEGA, Atari, and others. A list of some popular emulators available on the App Store so far follows. Released Delta Delta is...