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
Shattering The Myths Surrounding Real Estate Careers
Real estate is a lucrative career, there’s no denying that. But while it promises great money, it also brings along some...September 21, 2020
Two Retirement Dangers That You Have to Solve Sooner or Later
Retirement is a totally new life for anyone, moving from a congestion of ideas and persistent work to complete calm and...September 17, 2020
Here’s Why You Should Seriously Consider Refinancing Your Home Mortgage
If you’ve heard of mortgage refinancing but never really understood it, allow us to give you the simplest explanation for it...September 17, 2020
Basketball Sensation Dwight Howard Lists His D.C House on the Market
One of the most glamorous sports of all time is basketball. The sheer number of NBA fans across the world is...August 7, 2020
Big Budged: First Lady Melania Trump Has Some Reconstruction Plans Up Her Sleeves For Rose Garden
Melania Trump is ready to step into the limelight as a “traditional First Lady” with her recently disclosed plans of revamping...August 3, 2020
Legendary actor Anthony Hopkins Makes Huge Profit on the Sale of his Malibu Beach House
There would hardly be a movie buff who hasn’t watched, easily one of the most brilliant masterpieces of Anthony Hopkins, “Silence...July 29, 2020
Tristan Thompson Returns His Encino Mansion to the Market Less Than a Year after Buying It
It seems that flipping houses isn’t a hobby only A-list actors from Hollywood sport. Famous singers and even broadcasters like to...July 29, 2020
7 Must-know Property Investment Tips for Beginners
Real Estate investment is gaining a considerable amount of popularity as a means of passive income in the year 2020. Making money through investing in...July 29, 2020
After Two Years of Remodeling, Diane Keaton Finally Tosses her Tucson Desert Villa on the Market for $2.6 Million
The American actress, Diane Keaton, has a keen eye for aesthetics and real estate. Famous for featuring in all-time favorite movies like...July 22, 2020