Irish government agreed with Apple settlement of 13-billion-euro taxes | Finance and Markets

Share This On Social

The Irish government agreed with the IT giant Apple about the conditions for settlement of unpaid due taxes. The amount to be returned to the state, at the request of the European Commission, is estimated at around 13 billion EUR. The two sides have decided to create a dedicated deposit fund, which will start receiving the money from the first quarter of 2018. The information was confirmed by the Irish Finance Minister, Paschal Donohoe.
On 30 August 2016, the European Anti-trust Regulator ruled that the Dublin government illegally provided Apple with tax breaks. These benefits have allowed the company to save about 13 billion USD. The EC obliges the iPhone manufacturer to return these funds to the country, but the decision has never been met.
The finance minister himself said in August that Ireland does not plan to claim this amount from Apple and will challenge the EC’s decision. As a result, on October 4th, The European Union has decided to give the Irish Government to the European Court of Justice. And thereby force it to demand Apple’s unpaid taxes.
The low tax rates and various reliefs are the cornerstone of Dublin’s economic policy. The base rate for profit tax is 12.5%, which is the lowest among countries in Western Europe. Thanks to this, in Ireland are located divisions of more than 700 large companies, which create in the country over 14,000 jobs.