Apple will place the first deposit of its € 13 billion (approximately $14 billio) Irish tax bill in an escrow account next month, Minister for Finance Pascal Donohoe says. He added that he would be signing the escrow framework deed, which sets out the legal agreement regarding the recovery of the alleged state aid with the tech giant later today, reports The Irish Times.
It’s anticipated that Apple will make a series of unspecified payments into the account over the next six months with the full €13 billion recovered by the end of the third quarter of 2018.
“This is a significant milestone with regard to the commencement of the recovery of the alleged Stare aid, as the escrow framework deed is the overarching agreement which will govern the collection and eventual payment of funds,” Donohoe said.
The European Commission ruled in 2016 that Ireland offered Apple unfair tax advantages and ordered the money repaid. The commission later threatened Ireland for taking too long to collect the money. Ireland was nervous to do so without an escrow in place to remove liability if the funds lose value during the appeal process.
Apple and Ireland are appealing the original ruling, claiming the tax treatment was in-line with local and EU laws.
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