Apple to start paying €13bn back tax bill

APPLE has agreed to start paying over the €13billion in back taxes it owes the Government, it was announced yesterday.

The money will not be used by the Government, but will be set aside in a special account as politicians and the tech giant fight a legal battle for the country to be allowed to give the money back to Apple.

Finance Minister Paschal Donohoe told RTÉ News yesterday that the Government has reached agreement with the company on how the account will operate.

Mr Donohoe said: ‘We have reached agreement with Apple in relation to the principles and operation of the escrow fund.

‘We expect the money will begin to be transmitted into the account from Apple across the first quarter of next year.’

In 2016, the European Commission ruled Apple must repay €13billion in back taxes it owes the State as a result of not paying enough tax here over the years in which it has been operating in Ireland.

Apple and the Government fought the EC ruling, which claimed that tax benefits received by the iPhone company were illegal under EU rules as they allowed Apple to pay less tax than other businesses.

The decision is being appealed. Ireland’s stance caused tension with Brussels, which referred the country to the European Court of Justice in October for failing to collect the back taxes due.

Tension also grew between the Government and Apple after the company walked away from a planned €850million data centre in Athenry, Co. Galway, last month.

Taoiseach Leo Varadkar told the Dáil in recent weeks that he wanted the disputed money placed in escrow immediately.

He said: ‘We’ve indicated to them (Apple) that we want the escrow account established and we want funds to be paid into the escrow account without further delay.’