Apple will begin paying Ireland €13 billion in back taxes

Apple will begin paying Ireland €13 billion in back taxes

The Irish government has finally com e to an agreement with Apple, to begin collecting the €13bn it is owed by the iPhone creators.

"We have now reached agreement with Apple in relation to the principles and operation of the escrow fund", said Paschal Donohoe, the finance minister. Now, though, Apple has been forced to agree repayment schedule with the Irish government that will see it begin to make a dent in the €13 billion debt starting early next year.

Given that CEO Tim Cook harps on about the need for tech companies to have a social conscious, you'd have thought Apple would be the last company to do some imaginative accounting and channel its cash around the world to avoid paying hefty tax rates.

Not just Apple, Amazon was also ordered to repay $293 million in back taxes after the European Commission said it had been given an unfair tax deal in Luxembourg. The money which has now agreed to be paid will be held in a special bank account as both the Irish government and Apple are lodging appeals against the European Commission's ruling.

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Ireland's low tax deals to large companies has been a key role in the country's economic success.

The EU said it planned to refer Ireland to the European Court of Justice for failing to recover the money in back taxes from Apple.

With Apple's appeal still in process, the tax payments will be made into an escrow account. "We remain confident the General Court of the European Union will overturn the Commission's decision once it has reviewed all the evidence", Apple told the Wall Street Journal (paywall).

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