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
Rosie O’Donnell Exceeded Campaign Contribution Limits to Five Democrat Candidates
Rosie O’Donnell may have some pressing legal issues she needs to take care of in the future. It has been revealed...May 25, 2018
Pharma Giant Novartis Paid Cohen an Astounding $1.2 Million to Gain Inside Access!
The controversy surrounding Trump and his longtime lawyer, Cohen has yet to subside as the authorities have unveiled a chilling truth...May 25, 2018
Boeing to Lose $20 Billion Aircraft Deals Due to Trump’s Withdraw from Iran’s Nuclear Pact
Last Tuesday, President Trump announced that the United States will withdraw its nuclear Pact with Iran. The new move of the...May 25, 2018
Robert Downey Jr.’s Original and Iconic Iron Man Suit Valued at $325,000 Got Stolen!
When we talk about Marvel, one of the first people that come to mind is the iconic hero, Iron Man. Iron...May 25, 2018
California Becomes the 5th Largest Economy in the World, Surpassing the UK
With the Brexit looming and the UK’s uncertain future when it comes to free trading, there’s no doubt that the formidable...May 25, 2018
Pen-registered Trump Lawyer’s Phones Reveal Vital Information!
It has been revealed that federal investigators have been monitoring Michael Cohen’s phone lines. Cohen, who has been Trump’s personal loyal...May 25, 2018
A Donor Claims Clinton’s Nonprofit Group Won’t Let Him Cancel His $10.48 Monthly Contribution!
A Seattle man named Corey Koscielniak, 29-years old, shared how he wanted to stop his recurring tithe that amounted to $10.48...May 25, 2018
Trump Won’t Build a Shelter for Migrants Seeking Asylum in the Mexican Border
More than a thousand civilians, mostly composed of women and children, are sleeping near San Ysidro, California where the Mexican border...May 25, 2018
Sources Claim that Trump’s Campaign Funds also Paid Cohen’s Legal Fees
The recent sources obtained from Trump’s personal attorney, Michael Cohen, revealed that he nearly spent an astounding $228,000! This amount is...May 25, 2018