Irish corporate tax receipts were up 59% in the first 11 months of the year, lifted by a portion of a 14 billion euro Apple back-tax windfall “that has boosted already healthy revenues,” reports Reuters.
Finance Minister Jack Chambers said in a statement that around two-thirds of the revenue arising from the Apple ruling had been received to date. Ireland is due to draw down the Apple back taxes from an escrow account over several months following a ruling in September that its favorable tax treatment of the iPhone maker had been unlawful.
The European Commission, Europe’s anti-trust and consumer investigation agency, ruled in 2016 that Ireland, Luxembourg and the Netherlands have attracted investment and jobs by helping big companies avoid tax in other countries, including European Union members.
The commission said Ireland was too lenient in rulings it gave to Apple and which helped the company shield tens of billions of dollars in profit from taxation. At 12.5%, Ireland’s corporate tax rate beats the U.S. rate of 35%. However, participating companies don’t pay that 12.5% under the double Irish structure.
As a result, the European Commission ruled that Apple must pay €13bn (about US$14 billion) in unpaid taxes to Ireland by the European Court of Justice (ECJ).
