Apple may be on its way to being worth a trillion dollars, but this setback will still put a dent in the company's sizable fortune. One of Ireland's top official confirmed that they have reached an agreement with the iPhone maker to pay the country's reserve about US$15.4 Billion in back taxes.
After this arrangement, Ireland can expect up to 13 billion euros in back taxes from Apple, with the first installments going into an escrow account starting from the first quarter of 2018, according to Irish Finance Minister Paschal Donohoe.
"We have now reached agreement with Apple in relation to the principles and operation of the escrow fund," Donohoe revealed to the press ahead of a meeting with European Competition Commissioner Margrethe Vestager, according to Reuters.
"We expect the money will begin to be transmitted into the account from Apple across the first quarter of next year," Donohoe added.
Ireland is in hot water itself when it was cited by the European Court of Justice for failing to collect that amount in taxes. The island country was mandated by a 2016 order as part of the European Commission's new mandate to get American multinational companies to pay more taxes, according to Ars Technica.
It's the same Vestager that Donohoe was scheduled to meet on Monday, Dec. 4, that is leading the Commission towards stopping huge multinational companies from exerting their influence to get "sweetheart deals," especially from smaller European countries.
Apple and Amazon have reportedly taken advantage of the business-friendly tax structures of small countries like Ireland to create what effectively works as tax havens — complicated corporate networks that list the bulk of their profits to shell companies to cut down on taxes.
"We have a dedicated team working diligently and expeditiously with Ireland on the process the European Commission has mandated," Apple said in a statement, as quoted by UPI. The company is not giving up just yet, though.
"We remain confident the General Court of the EU will overturn the Commission's decision once it has reviewed all the evidence," Apple added.