Apple Pays Ireland Back €14.3 Billion Owed In Back Taxes

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It has been confirmed that the EU have terminated their lawsuit against Ireland following Apple’s payment of €14.3 billion to compensate Ireland for the company’s failure to pay back all money owed. Apple has also paid a further €1.2 billion in EU interest.

The EU were originally planning on carrying out a lawsuit after Ireland breached EU law by offering benefits to Apple, resulting in the provision of illegal state aid. Following the European Commission’s ruling that Apple had to pay the fees that they received from unfair tax incentives, the company have deposited the amount owed to Ireland in to the Escrow Fund (third party account) until a full agreement has been reached. Following the payment, a spokesperson for the European Commission stated: “In light of the full payment by Apple of the illegal state aid it had received from Ireland, Commissioner Vestager will be proposing to the College of Commissioners the withdrawal of this court action.”

In an official statement The Minister for Finance and Public Expenditure Paschal Donohoe said: “This is the largest State Aid recovery at c. €14.3 billion and one of the largest funds of its kind to be established. It has taken time to establish the infrastructure and legal framework around the Escrow Fund but this was essential to protect the interests of all parties to the agreement.”

The money will remain in the Escrow Fund until a full agreement is met.