Apple Inks $15B Deal with Ireland To Clear Up Back Taxes

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Furthermore, the Commission ordered Ireland to collect back taxes for the years from 2003 to that of 2014, amounting to as much has a whooping amount of 13 billion euros plus interest of the long number of years.

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 European Commission had ordered Ireland to collect the money after concluding that two Irish tax rulings allowed Apple to pay less tax than other businesses - thus giving them an unfair advantage.

According to a top Irish official, Apple has agreed to to pay Ireland around $15.4 billion in back taxes.

Money from Apple will start to be paid into the account from the first quarter of 2018, the Minister said.

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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.

However, Apple added that it remains confident that the court will overturn the commission's decision after reviewing and reading the evidence they have presented in their defense.

While in Brussels to "update" Vestager on the agreement, Donohoe said Ireland was still contesting the Commission's ruling, but would be "complying with our obligations in terms of collecting the money from Apple".

Ireland and Apple have reached an agreement that will see the technology giant start paying the EUR13bn (USD15.4bn) it is alleged to owe in back taxes.