Apple will pay up to $16 billion in back taxes within months, Ireland says
Irish Revenue Commissioners chairman Niall Cody told a parliamentary committee his office will likely tally up a tax bill for Apple of around $16 billion, Reuters reports. “It’s in that ballpark,” Cody said.
“Over 95 percent of the calculations are completed and we have agreed with the Commission that all our calculations will be with them before the end of April,” he said.
Apple agreed to pay the record-setting tax bill in December after the European Union ordered Ireland to charge Apple $15.4 billion in back taxes. A multi-year investigation by the Brussels-based commission found that the tech company had used loopholes–in the form of Irish subsidiaries–to avoid paying taxes. This, the EU said, amounted to unfair state aid.
Both Ireland and Apple have appealed the EU order. Apple chief executive Tim Cook called the ruling “total political crap” in an interview with the Irish Independent last year.
In the meantime, the billions in back taxes will begin flowing into an escrow account within the next two months, said John Hogan, assistant secretary of the Tax Division of the Department of Finance, according to RTE. Officials also confirmed that no other countries have yet made a claim to any of the taxes.
The money will be released after the General Court of the European Union makes its final decision, according to a statement from the Irish Finance Ministry.
Meanwhile, Apple looks to profit handsomely from the newly passed U.S. tax law, with some analysts projecting that the company could repatriate about $200 billion of the roughly $252 billion it holds in overseas affiliates. That’s more overseas cash than any other tech company, as of December:
See some of the other ways Apple could benefit from the new tax law here, and read Fast Company‘s recent interview with Tim Cook here
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