Apple Inc. (NASDAQ:AAPL) and Ireland is currently fighting against the ruling of EU competition authorities and awaiting a hearing on their appeal expected to be made by the end of this year in autumn. The ruling made by the European competition commissioner, Margrethe Vestager says that the U.S. tech giant was offered unfair tax incentives by the Irish government.
Both Dublin and the American firm have denied the allegation according to which Apple has to pay 13 billion Euros in disputed taxes. Apple already has started repaying back the disputed tax amount to the Irish government through an Escrow account. The Finance Minister of Ireland, Paschal Donohoe has said that they are expecting the appeal to be heard before the end of this year. The Irish Minister said, “How long the hearings will last, will depend on the judges overseeing it and could be open to either party after that to take any further action.”
In their appeal both Dublin and Apple has said that the tax treatment provided to the iPhone maker was in line with the regular Irish and European Union Law.
Apple To Pay The Amount By September In Installments
As per the statement of Donohoe, an agreement has been signed between the Smartphone maker and Dublin according to which the American firm will transfer large amount next month and will then pay around €1bn in installments by the end of September this year. This arrangement is in accordance with the ruling of the EU Commission that has ordered Ireland to collect 13 billion Euros as tax repayment from Apple. According to the finance department of the country, the amount can go beyond 15 billion Euros including the EU interest.
The amount expected to be repaid by Apple was due to be paid by the company in January 2017. Speaking about the tax repayment process, Mr. Donohoe said that it is now moving towards a significant phase of development as it will be the largest recovery of fund of its kind ever to be established considering the complexity of the issue and its due compliance as per the procurement rules of the EU Commission.