Apple to Pay Ireland Billions in Back Taxes

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The Ireland Department of Finance announced it has reached an agreement with Apple put almost $15 billion in escrow while its dispute with the European Commission over alleged unpaid taxes proceeds through the courts. He added that the Government expects that "the money will begin to be transmitted into the account from Apple across the first quarter of next year".

Speaking in Brussels, Irish finance minister Paschal Donohoe said: "We have now reached agreement with Apple in relation to the principles and operation of the escrow fund".

Both Apple and Ireland will still appeal the ruling despite Apple agreeing to make a payment. The Government has denied favouring Apple and has joined the company in appealing the original ruling.

Having long disputed the ruling and failing to collect the tax, the case was sent to the European Court of Justice.

Ireland has allowed Apple to pay lower tax rates than other EU nations since the early 1990s, but the European Commission ruled in August 2016 that Ireland's practice was illegal and that Apple must pay the rest of the money it should have been taxed.

In a statement, Apple said that it remains confident the court will overturn the commission's decision once it has reviewed the evidence.

Both Apple and Ireland are continuing to fight the ruling - Ireland has said that the European Union overstepped its authority and got some of the country's laws wrong while Apple has maintained that the amount it's being told to repay was miscalculated.

Starting next year, will have to start paying Ireland back billions of back taxes.