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Ireland: Apple has paid two-thirds of US$15b tax bill

 |  August 5, 2018

Apple has so far made two payments of €4.5 billion (US$5.2 billion) into an escrow account for the €13 billion (US$15.1 billion) in back taxes the European Commission has ordered it to pay Ireland, according to new regulatory filings.

“As of June 30, 2018, €4.5 billion (US$5.2 billion) of the recovery amount was funded into escrow. Subsequent to June 30, 2018, the company has funded an additional €4.5 billion (US$5.2 billion) of the recovery amount into escrow,” Apple stated in quarterly documents reported by Reuters.

Apple and the Irish government set up an escrow account rather than direct payments in anticipation of an appeal against the European Commission, which could begin this fall. The fight could stretch out for several years however with no guarantee of success, since the Commission has previously ruled against other multinational corporations accused of violating European tax rules.

In August 2016, the Commission ruled that Ireland had extended preferential tax deals to Apple for years, something considered illegal state aid under European law—aid offered to one company must be extended to others as well. The EU argued that the Irish government had even reverse-engineered rules to appease Apple.

Full Content: Reuters

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