Getting ahead of an upcoming 2016 tax ruling, Apple has paid the equivalent of more than $15 billion to the Irish government to settle claims of underpayment of tax to the European Union.
The company’s 13.1 billion euro outstanding balance of its disputed balance to the government of Ireland, according to the country’s finance mirror.
In addition to the 13.1 billion euro balance, Apple has paid an additional 1.2 billion euros ($1.4 billion) in interest.
The reason for the payments is a 2016 ruling by the European Commission finding that Ireland must collect billions in back taxes from Apple. The ruling found that the Irish government had extended preferential tax treatment to Apple, which has long had its European headquarters in that country. The EU does not allow individual member states to give companies benefits not available elsewhere in the EU.
Apple and Ireland alike are appearing the ruling, with the appeal being expected to start this fall. As of early August, Apple had paid $10.4 billion of the $15.3 billion balance.
In February, the EU said it might drop a court case against the Irish government if it succeeded in covering the money owed by Apple.
Apple has done business in Ireland since 1980, and currently fields roughly 6,000 employees in the country, alongside a large community of app developers.
The company has taken advantage of the ability to pay lower taxes as a result of its presence in Ireland, but when Tim Cook visited the country in June, he said Apple’s Ireland presence goes beyond that.
In May, Apple canceled its Athenry data center project in Ireland, citing delays in the approval process. On his visit, Cook made clear that Apple has no plans to leave Ireland.
Stay tuned for additional details as they become available.
Via AppleInsider and Reuters