Apple Pays €1.5 Billion as Initial Payment for Back Taxes to Ireland
AppleTechnology is now accelerating at an unprecedented speed. With companies like Apple in its forefront, innovation is what drives the industry forward. Being one of the biggest industries that the world has ever seen, technology has become a new gold rush bringing in billions of dollars in revenue worldwide.
However, the growth of the industry has been a fast one with the world barely catching up. Politics around the world has yet to cope with the sudden boom. One sector that proves to be of concern is the proper taxation of tech companies.
Apple has begun paying it’s €13 billion in taxes it owes to Ireland, according to sources. The tech giant has made an initial payment of 1.5 billion euros ($1.18 billion) in an Escrow account set up by the country. With the payment done by the Cupertino-based company, the EU officials are reportedly open to dropping the lawsuits against the Irish Government for delays in collecting the payment.
In 2016, the European Commission ordered Ireland to collect (EU)13 billion in back taxes owed by Apple Inc. The commission claimed that Ireland had made preferential tax deals with the company to purportedly entice the multinational company into the country.
This, the commission adds, led Apple to pay only the minimum taxes to the European Union. However, both Dublin and Apple denied that such deals were made between the two and that the tech company complied with EU and Irish tax laws.
The European Commission, as well as the executive arm of the union, announced back in October of last year that they would be taking Dublin to the European Court of Justice because of the delays in the collection of the taxes owed.
The initial tranche of the payment should have been collected by January 2017, four months after the first ruling. With this, the commission started pressuring Dublin into collecting the back taxes owed so that the legal actions can be dropped. If the European Court of Justice found Ireland to be liable, the could face hefty fines.
Apple and Dublin have formally appealed the ruling denying any irregularity on their side. The appeal is likely to be heard later this year as stated by Mr. Donohoe back in April this year. However, no exact dates are given.
Apple to face the EU on its own
Earlier this month, The European Court of Justice has blocked the US’s involvement in Apple’s appeal to the ruling. This is an upholding of a ruling of a lower court in December 2017 stating the US has failed to prove that it has a direct interest in the matter.
A US Department of Justice official has said the country is disappointed that it has been denied involvement and that emphasized that they indeed have direct interest due to legislation that has been enacted as the lower court made a decision.
Terms of Payments
According to Irish press, a series of payments will be made to the escrow accounts at the 2nd and 3rd quarter of 2018. This low-risk escrow account will be managed by Amundi, BlackRock Investment Management, and Goldman Sachs Asset Management, until such time as a final decision is made regarding the matter.
The EU and other Tech Giants
Last year, The Commission handed $2 billion in fines against Google over antitrust concerns. They also sanctioned Facebook Inc., with a hefty fine of $122 million for giving misleading statements regarding its acquisition of WhatsApp.
More in Finance & Business
The Top Monthly Expenses That Could Be Costing You a Fortune!
Coming up with a picture-perfect budget can be a complex affair. That being said, it is an essential element to have...February 15, 2019
Sharapova on Her Childhood and The Things That Make Her Happy
Sharapova’s Childhood There was a time in Maria Sharapova’s life when her family didn’t really have much. According to her, she...February 14, 2019
Nick Jonas and Priyanka Chopra Start a Chapter in $6.5 Million Luxury Villa
To be honest, 2018 was filled with bitter-sweet moments for Hollywood where many celebrities got engaged or married while others ended up in ugly...February 14, 2019
L’Oreal Cosmetic Sales Rises on The Back of Strong Chinese Demand
Chinese Shoppers’ Demands The increased demand of Chinese consumers for luxury skin products, particularly creams contributed to L’Oreal’s success in outperforming...February 13, 2019
Best Ways to Cut Down Credit Card Debt That You Must Know
The present economy means that a lot of people have maxed their credit card out, but the problem is that, even...February 13, 2019
Justin Bieber Proves Family Comes First With a Surprise $850,000 Home
Some of the biggest names in Tinseltown know how their parents struggled to raise them. Many of these celebrities didn’t break through...February 13, 2019
Check Out John Travolta’s Bizarre Home You May Not Want to Live In
Not every celebrity owns homes we would want to buy. In fact, some celebrities’ homes are so bizarre that you may not...February 12, 2019
Inside Kris Jenner’s Secret Hidden Hills Home No One Has Ever Seen Before
Over the years, Momager Kris Jenner has watched her daughters become wealthy and influential. Thanks to Keeping Up with the Kardashians,...February 12, 2019
Look Inside Bradley Cooper’s MASSIVE $13 Million New York Townhouse
Poor Bradley Cooper had to face embarrassment at the Oscars because his directorial debut in A Star is Born was snubbed by the...February 11, 2019