Ireland reluctantly agrees plan begin collecting €13bn in Apple back tax

Conor Coyle WebFG News | 05 Dec, 2017 12:26 - Updated: 12:26 | | |

apple tienda quinta avenida

Apple Inc.


23:26 15/12/17
  • 24,651.74
  • 0.58%143.08
  • Max: 24,211.48
  • Min: 24,211.48
  • Volume: 0
  • MM 200 : n/a
23:10 15/12/17
  • 2,675.81
  • 0.49%12.96
  • Max: 2,679.63
  • Min: 2,659.14
  • Volume: 0
  • MM 200 : n/a
21:26 15/12/17
  • 6,466.32
  • 1.20%76.41
  • Max: 6,470.92
  • Min: 6,405.03
  • Volume: 0
  • MM 200 : n/a
23:26 15/12/17
  • 1,186.68
  • 0.55%6.44
  • Max: 1,188.00
  • Min: 1,180.18
  • Volume: 0
  • MM 200 : n/a
21:26 15/12/17
  • 170.82
  • 0.61%1.03
  • Max: 170.82
  • Min: 170.82
  • Volume: n/a
  • MM 200 : n/a
22:00 05/12/17
  • 146.20
  • -0.48%-0.70
  • Max: n/a
  • Min: n/a
  • Volume: n/a
  • MM 200 : n/a
16:57 15/12/17
  • 146.60
  • 0.27%0.40
  • Max: 146.20
  • Min: 146.20
  • Volume: 0
  • MM 200 : n/a
16:56 15/12/17

Apple and the Irish government have finally agreed a plan for the US tech giant to repay €13bn in unpaid taxes to the state, as a result of an EU ruling from last year.

Ireland will begin to receive the money at the start of 2018, despite resisting the calls to collect the taxes from Apple. Ireland's tax benefits to the US technology colossus were found to be illegal under EU state aid rules as they allowed Apple to pay substantially less tax than other businesses.

It is more than a year since the European Commission, led by hardline competition commissioner Margrethe Vestager, hit Apple with the order to collect the €13bn of back tax after it was accused of paying corporation tax rates of as low as 0.005% in the country. In October this year, the Commission referred Ireland to the EU Court for failing make Apple pay.

“We have now reached agreement with Apple in relation to the principles and operation of the escrow fund,” Irish finance minister Paschal Donohoe said on Tuesday.

“We expect the money will begin to be transmitted into the account from Apple across the first quarter of next year,” he added.

The ruling from the commission stated that the tax breaks afforded to Apple by the state were illegal as they allowed the company to pay much lower rates than Ireland’s tax rate of 25%.

Both Apple and the Irish government have reiterated their intent to appeal the decision, with the company saying in a statement to the Wall Street Journal it will recoup the money if successful.

“We have a dedicated team working diligently and expeditiously with Ireland on the process the European Commission has mandated,” Apple said. “We remain confident the General Court of the EU will overturn the Commission’s decision once it has reviewed all the evidence.”

Apple has maintained that European authorities overstepped their mandate in the decision, as Vestager and her department pursue other multinational tech firms which use questionable tax practices on the continent.

More news

15 Dec London close: Footsie gains as pound drops, Wall Street hits fresh highs

The top flight index recovered some ground on Friday, but mostly on account of weakness in Sterling after German Chancellor Angela Merkel reportedly echoed other European Union officials, saying "the most difficult phase is ahead of us".

15 Dec Week ahead: US data, Catalan elections in focus

The focus in the coming week will continue to be on the ebb and flow of data out of the US, including Republicans' progress on securing passage of their tax cuts.

15 Dec US open: Stocks jump as Republicans move to secure passage of tax cuts

Wall Street is heading higher again on Friday amid news that Republicans were tweaking their proposed tax cuts in order to secure prompt passage of the US tax bill.

15 Dec Airbus chief executive to step down in board shake-up

The chief executive of French planemaker Airbus will step down from his position in 2019 as the company announced a major shake-up of its management team.

15 Dec FTSE 250 movers: TalkTalk rises but Serco gives back gains

London’s FTSE 250 was up 0.1% to 20,023.23 in afternoon trade on Friday as the Christmas lull kicked in.

15 Dec US industrial production rises slightly less than expected in November

Industrial production in the States rose slightly less quickly than expected last month, despite higher output of business equipment and materials.

15 Dec Strategic Minerals renegotiates acquisition of Leigh Creek Copper Mine

Diversified mineral production and development company Strategic Minerals announced on Friday that, after the successful completion of technical and financial due diligence on the Leigh Creek Copper Mine company, it has agreed to continue with the acquisition on renegotiated terms.

15 Dec FTSE 100 movers: Sky jumps but retailers retreat on H&M sales

London’s FTSE 100 was up 0.3% to 7,469.23 in quiet afternoon trade on Friday.

15 Dec Gfinity partners with Microsoft for next Halo World Championship

International esports entertainment group Gfinity has been named as a preferred event partner to Microsoft for the forthcoming ‘Halo World Championship 2018’ for the next season, it announced on Friday.

15 Dec Hutchison Chi-Med begins fruquintinib trial in US

Hutchison China MediTech, known as Chi-Med, has initiated the United States Phase I bridging clinical trial of fruquintinib, it announced on Friday.