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Published: Wed, December 06, 2017
Economy | By Melissa Porter

Ireland set to collect $15b in tax from Apple

Ireland set to collect $15b in tax from Apple

More than a year after an European Union deadline for Ireland to recover €13 billion ($15.4 billion) in back taxes from Apple, Dublin has finally agreed to start recovering the money.

The Ireland Department of Finance announced it has reached an agreement with Apple Inc.to put almost $15 billion in escrow while its dispute with the European Commission over alleged unpaid taxes proceeds through the courts.

This is a temporary account as it operates until the completion of a transaction process, which is implemented after all the conditions between the buyer and the seller are settled.

The Cupertino firm was found to owe the money in a ruling in 2016 which found that Apple and Irish tax officials had made deals between 1991 and 2007 which amounted to state aid.

The $15,4 billion will start flowing into Irish coffers in Q1 2018, but Apple continues to deny any wrongdoing. The ruling obliges Apple to pay back €13bn. The government of Ireland had said in a statement on Monday that, "an agreement had been reached in relation to the framework of the principles that will govern the escrow arrangements".

The EU, therefore, demanded Ireland collect tax at a more normal rate, and when Ireland refused in 2016 referred them to the European Court of Justice. According to the EU, the tax deal allowed Apple to pay nearly nothing in tax on its European profits between 2003 and 2014. Whether or not the original ruling gets overturned remains to be seen.

According to the EU, the tax deal allowed Apple to pay nearly nothing in tax on its European profits between 2003 and 2014.

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