The effects of pervasive negative rates on European bonds and Apple being allowed to take out some money to pay taxes in other jurisdictions nibbled away at the original amount in the account between 20.

If the EU wins, the sum will be handed over to the Irish government if the EU loses, it will be returned to Apple.īut either way, the amount handed over will be down by some €900,000, reports The Irish Times. Apple Irish tax account valueĪt the time of the original ruling, Apple was ordered to pay the full sum of €14.3B into what’s known as an escrow account – an account administered by a neutral third party. That case was heard back in May of this year, but the final ruling won’t be known until November at the earliest (though more likely next year). The EC then appealed that decision, taking the case to the equivalent of the US Supreme Court, the European Court of Justice. The EC won the case, and Ireland was ordered to collect the underpaid tax from Apple.īoth the Irish government and Apple appealed the ruling, and they won.

The EC took the Irish government to court, arguing that the sweetheart deal was illegal.

This is known as a “sweetheart” tax deal, where a government offers a special arrangement to a large company because it wants the tax revenue and jobs arising from being based there. Ireland agreed to arrangements that would result in an effective tax rate of around 2%. The company then sought out a country that would allow it to pay minimal taxes there. (The way the tax-avoidance scheme worked is explained here.) All profits would be funneled through to its European HQ.

When Apple was looking for a European headquarters, it made arrangements to use an accounting mechanism that would mean that it could avoid paying corporation tax on its sales in 27 European countries. The current value of the fund – which will either be handed over to the Irish government, or returned to Apple – is said to have fallen to €13.4B ($14.6B) … The backstory But it’s reported that the fund has lost almost a billion euros (or dollars) since it was established back in 2018. Some €14.3B ($15.5B) has been sitting in an Apple Irish tax escrow account, while we await for a final ruling on whether or not the sum has to be paid.

Vectorworks download mac