December 5th 2017
By Mike Flaminio
Apple and Ireland set terms for delivering about $15 billion in back taxes. The funds will be held in escrow while Apple appeals the EU's order.
The European Commission had ordered Ireland to collect the money after concluding that two Irish tax rulings allowed Apple to pay less tax than other businesses -- thus giving it an unfair advantage. The Commission ordered Ireland to collect back taxes for the years 2003-2014, which it estimated to be as much 13 billion euros plus interest.
What's interesting is the EU order is forcing Ireland to collect the funds it doesn't want to collect. Apple has massive cash and short-term assets held overseas, so I'd guess this won't put much of a dent in the balance sheet, although if it stands, the move may affect future dividends to shareholders and profits on international sales going forward.