Apple pays Ireland record shattering $15 billion lump sum to settle tax dispute
Ahead of an upcoming appeal of a 2016 tax ruling, Apple has paid the equivalent of over $15 billion to the Irish government to settle claims of underpayment of tax to the European Union.
Apple has paid the entire 13.1 billion euro outstanding balance of its disputed taxes to the government of Ireland, Reuters reported Tuesday, citing Ireland's finance minster.
In addition to the 13.1 billion ($15.3 billion in U.S. dollars), Apple has paid an additional 1.2 billion euros ($1.4 billion) in interest.
The reason for the payments is a 2016 ruling by the European Commission finding that Ireland must collect billions in back taxes from Apple. The ruling found that the Irish government had extended preferential tax treatment to Apple, which has long had its European headquarters in that country. The EU does not allow individual member states to give companies benefits not available elsewhere in the EU.
Both Apple and Ireland are appealing the ruling, and the appeal is expected to start this fall. As of early August, Apple had paid $10.4 billion of the $15.3 billion balance.
In February, the EU said it might drop a court case against the Irish government if it succeeded in covering the money owed by Apple.
The 14.3 billion euros, Reuters said, is enough to fund Ireland's health service for a year.
The company has taken advantage of the ability to pay lower taxes as a result of its presence in Ireland, but when Tim Cook visited the country in June, he said Apple's Ireland presence goes beyond that.
"Honestly speaking, we didn't come to Ireland for tax," Cook told an Irish newspaper during his visit. "We came to Ireland in 1980 because we saw a community we thought we could grow, and could do a number of things to support the continent. We've stayed on course on that over almost four decades. It hasn't been a straight line - life isn't a straight line, things go up and down - but it's always been in a trajectory that is increasing. I don't anticipate that changing."
In May, Apple canceled its Athenry data center project in Ireland, citing delays in the approval process. On his visit, Cook made clear that Apple has no plans to leave Ireland.
Apple has paid the entire 13.1 billion euro outstanding balance of its disputed taxes to the government of Ireland, Reuters reported Tuesday, citing Ireland's finance minster.
In addition to the 13.1 billion ($15.3 billion in U.S. dollars), Apple has paid an additional 1.2 billion euros ($1.4 billion) in interest.
The reason for the payments is a 2016 ruling by the European Commission finding that Ireland must collect billions in back taxes from Apple. The ruling found that the Irish government had extended preferential tax treatment to Apple, which has long had its European headquarters in that country. The EU does not allow individual member states to give companies benefits not available elsewhere in the EU.
Both Apple and Ireland are appealing the ruling, and the appeal is expected to start this fall. As of early August, Apple had paid $10.4 billion of the $15.3 billion balance.
In February, the EU said it might drop a court case against the Irish government if it succeeded in covering the money owed by Apple.
The 14.3 billion euros, Reuters said, is enough to fund Ireland's health service for a year.
Irish history
Apple has done business in Ireland since 1980, and currently has about 6,000 employees there, as well as a large community of app developers.The company has taken advantage of the ability to pay lower taxes as a result of its presence in Ireland, but when Tim Cook visited the country in June, he said Apple's Ireland presence goes beyond that.
"Honestly speaking, we didn't come to Ireland for tax," Cook told an Irish newspaper during his visit. "We came to Ireland in 1980 because we saw a community we thought we could grow, and could do a number of things to support the continent. We've stayed on course on that over almost four decades. It hasn't been a straight line - life isn't a straight line, things go up and down - but it's always been in a trajectory that is increasing. I don't anticipate that changing."
In May, Apple canceled its Athenry data center project in Ireland, citing delays in the approval process. On his visit, Cook made clear that Apple has no plans to leave Ireland.
Comments
Edit: I read the linked article and it is the latter. Apple made it's last escrow payment. Yawn.
Yeah, RIGHT!
There are so many communities that "could grow" and many continents that need "support", and you just so happened to choose...Ireland, who also quite notably gives incredible tax preferential treatment. Wow, what a happy coincidence, huh?
The luck o' the Irish has just been smilin' down upon Apple! That big, bad EU had to step in and cause trouble for our shining knight, darn them!
Guess all the fanboys will be posting here in droves, helping to defend their beloved 900 lb. gorilla. Paying their fair share of taxes...this injustice shall not stand!
In other words, it wasn’t Ireland that was chasing its tax revenue, it was those fascists in Brussels. This case was about establishing that in tax law, as with much else, the EU has taken Ireland’s Sovereignty.
Why does the EU need Apple at all?
Apple and taxes. Is the ability to decide how much to make available for taxation and then pay 0.005% on that amount beneficial for the EU?
If Apple collapsed tomorrow the EU wouldn't bat an eyelid. People would still have phones, computers etc and I can guarantee you the EU would actually receive more in taxation than it currently does.
Apple's sales would see a significant hit without the EU. I think Apple would rather not lose that revenue.
https://www.irishtimes.com/business/technology/how-apple-first-landed-in-ireland-1.1405766
See post right above. @randoninternetperson is spot on. You must clarify your headline and text because they are incorrect.
In those days the amounts involved were nothing like today and the laws weren't the same either but there is no getting away from the fact that Ireland was actively courting companies and offering 'deals' to tempt them in. This was widely and frequently reported during those years and Ireland became a success story.