Apple Deposits First Installment Of Tax Money In Escrow Account: Irish Minister

The first installment of the tax amount that was ordered by the European Commission (EC) to pay back to the Irish government on Apple was paid up by the U.S. company. The Commission had made the order based on allegations of violation of the State Aid rules of the European Union (EU).

The company deposited an amount of 1.5 billion euros (about 1.77 billion U.S. dollars) against the Commission’s order in an escrow account of the Ireland government, confirmed the Irish Finance Minister Paschal Donohoe on Friday.

The minister said in a statement that it is expected that the remaining amounts would be paid up by the company in installments during the second and third quarters of 2018 as had been decided earlier after the payment of the first installment amount.

The minister also added that the government will not make any further official comment related to the collection of the alleged state aid till such time that the entire amount is paid up by the company which is expected to be completed by the end of the third quarter of this fiscal year.

The Irish minister however reiterated that the Irish government has appealed against the Commission’s decision over Apple with the European Courts because it does not accept the EC’s analysis in the Apple state aid decision.

“However, we have always been clear that we are fully committed to ensuring that recovery of the alleged Apple state aid takes place without delay and have committed significant resources to ensuring this is achieved,” he said.

The decision for the tax refund by Apple was taken by the Commission in August 2016 after allegations that the U.S. tech giant had got tax incentives from Ireland that were unfair. The Commission judged that the company owed an amount of about 13 billion euros in taxes that the company was ordered to be paid back to the Irish government.

The Commission’s ruling was disputed by both the Irish government and Apple. The case was further brought up at the European Court of Justice in October 201 because both the Irish government and Apple had delayed complying with the ruling of the Commission.

Under the rules of the European Union, the ruling of the Commission has to be followed by both the Irish government and Apple and thereby pay back the tax amount due in the third party’s account even while both the parties have the chance of appealing to the European Court of Justice against the ruling.

The money that would be deposited in the third party’s account could be taken back by Apple if the final ruling of the European Court of Justice goes in favor of Apple and the Irish government.

(Source:www.xinhuanet.com)

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