The tech giant, Apple on 1st August 2018, revealed in a regulatory filing that they have paid two-third of the $15.1B which as per EU Entrust regulator, it owes to Ireland in the back taxes.
The whole story:
European Commission alleged Apple of an illegal tax deal with the Irish tax authorities in the year 2016. Apple was fined $15.1B for receiving favorable tax rates from Ireland with the hopes that it brings more business to the country.
As of June 30, 2018, 4.5 billion Euros of the total amount were funded in the escrow. Apple owes a total of 13 billion Euros plus an extra 1 billion Euros in interest. Apple has paid more than half of the imposed fine, yet this lawsuit will extend for a few more years. Funds will be kept in the escrow account while this case works their way through the court.
Why was Apple fined?
In August 2016, the European Commission ordered Ireland to claw back $15B from Apple in a landmark ruling. The commission found out that iPhone maker Apple has benefited itself from the Irish tax rulings. Apple was alleged for saving huge sums of tax over a few years. It was found that not only the tax ruling was generous but also violated competitor laws.
Looks like EU’s huge tax bill hasn’t hurt Apple’s money-making machine a bit. $15 billion is no big deal when you’re worth $1 trillion. EU commissioner quoted that lawsuit will be dropped as the Apple pays the whole amount. Lately, Google has also been fined by EU over Android Abuse, read here.
Article Source: https://www.firstpost.com/tech/news-analysis/apple-says-it-has-paid-two-thirds-of-the-15-1-billion-irish-tax-bill-4882571.html
