The Irish government announced the signing with Apple of an agreement allowing the payment, in a blocked account, of 13 billion euros tax benefits deemed undue by the European Union.
In August 2017, the EU commission said a sweetheart deal devised by the Irish government had allowed Apple to pay tax of just 0.005% in 2014 and an average rate of 1% over many years.
Brussels estimates that the US company has paid too little tax in Ireland because of a tax agreement with the country’s authorities, which would have allowed the Government to tax only a tiny part of the billions earned by Apple in Europe. Ireland is home to the European headquarters of Apple, which records all the profits made in this geographical area as well as in Africa, the Middle East and India.
The 13 billion euros should be transferred to the blocked account by the end of the third quarter.
The Irish minister of Economy nevertheless reiterated that Dublin and Apple are challenging the ruling, saying the iPhone maker’s tax treatment was in line with Irish and EU law.