€13bn EU tax will be paid over next year

APPLE expects to pay the record €13bn tax bill ordered by the EU next year, along with around €1bn of interest.

Last month, EU Competition Commissioner Margrethe Vestager declared that Ireland faces legal action for delays in recovering the tax from Apple, which she ordered to be collected more than a year ago.

Ireland and Apple dispute the basis of the EU ruling, saying the tax was never owed and have appealed the ruling.

However, in the meantime the Irish Government must collect and keep the funds.

In a corporate filing in the US yesterday, Apple said Irish officials still hadn’t calculated the true amount to be paid.

“Although Ireland is still computing the recovery amount, the company expects the amount to be in line with the European Commission’s announced recovery amount of €13bn, plus interest of €1bn,” Apple said in the filing.

Apple said it plans to pay the bill “out of foreign cash” – a reference to money made outside the US and which is being held offshore and therefore not yet subject to US tax.

The money is expected to be placed into escrow in 2018, and will remain there pending conclusion of all appeals, Apple said.

If Irish tax does ultimately end up being paid, that would be “creditable against US taxes”, meaning bills there would be reduced, Apple said.