Apple Inks $15B Deal with Ireland To Clear Up Back Taxes

Gladys Abbott
December 6, 2017

An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties.

The EU's ruling also angered a number government leaders in Ireland, who filed their own appeal on the grounds that the ruling infringes on the nation's sovereignty and harms its ability to attract business.

While the appeals are still ongoing, the European Commission ordered Ireland to begin collecting Apple's taxes on January 3, and the organization referred Ireland to the EU Court in October for failing to comply with the deadline. Per the Journal, the European Commission says it will not close court proceedings against Ireland until all of the money is transferred.

Apple's agreement on Monday has set the wheels in motion for the $14.6 billion to actually be delivered, with Irish officials saying they expected the first payments to be processed in early 2018.

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The EU ruling that Ireland offered illegal state aid to Apple, and must recover €13B ($15B) in underpaid taxes, marked the end of a long-running investigation - but not the end of the dispute ...

In October, Europe's competition chief Margrethe Vestager said the European Commission would take Ireland to court over its failure to collect taxes.

Back in 2016, the European Union ordered Dublin to retrieve billions of euros in back taxes.

The Irish Finance Ministry said: "These sums will be placed into an escrow fund with the proceeds being released only when there has been a final determination in the European Courts over the validity of the Commission's Decision". The ruling obliges Apple to pay back €13bn.

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