Apple no longer owes: company settles €14.25bn debt over Ireland tax manoeuvres
The very 0.005% tax that even economists have been joking about has finally caught up with the game - Apple has officially paid for its tax flexibility in the EU. The company has fully repaid the €14.25bn fine related to the period 2003-2014, when it, according to the European Commission, paid too attractive income tax in Ireland - from 0.005% to 1% instead of the standard 12.5%.
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The case involved a classic "amicable arrangement" between Apple and the Irish tax office. As a result, Ireland was to be compensated for the under-recovered €13bn, but when Apple went to appeal, the parties decided to temporarily place the entire sum in a special escrow account so that there would be no scandal or risk of the money floating away.
In the meantime, the money lay around, counting interest, and eventually ran up €14.25bn. It was from this account that the debt was paid in full. Apple is now clean with Ireland and the European Commission, and has no further obligations in the case.
What's interesting is that the Irish government was initially not very keen on the idea of levying this fine because Apple is investing in the country's economy. But the EU insisted: the rules are the same for everyone. Even if you're Apple.
Source: The Irish Times
