Ireland, Apple Agree To Put $15B In Escrow For Tax Dispute

Tammy Harvey
December 6, 2017

Ireland has struck a deal with Apple to collect up to 13 billion euros ($19.7 billion Cdn) in back taxes and hold it in an escrow account pending an appeal before the European Court of Justice.

In 2016, the European Union decided that a sweetheart tax deal in which Apple routed its European profits through Ireland broke the law, saying the arrangement constituted illegal state aid as similar tax rates were not made available to Apple's competitors.

The Commission in October had routinely initiated proceedings against the Government for its failure to recover the tax, which had been ruled by the Commission as an illegal favouring of the company by the Irish authorities.

While the appeals are still ongoing, the European Commission ordered Ireland to begin collecting Apple's taxes on January 3, and the organization referred Ireland to the EU Court in October for failing to comply with the deadline.


Apple may or may not be losing its tax advantage in Ireland, but the company has apparently been exploring other options for tax havens in Europe.

The BBC reports that Apple is paying the money into a so-called blocked "escrow" account and that Ireland is in the process of appealing the Commission's decision. The Cupertino, Calif. -based tech company said in a statement that it remains confident the court will overturn the ruling once evidence has been reviewed.

Both Apple and Ireland have argued against the ruling.

Now it appears Apple and Ireland have agreed to cooperate, and pay $15.4 billion to the Irish government, all while however still continuing litigating the case.

Other reports by Ligue1talk

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