Apple will repay billions in owed taxes to Ireland

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The Ireland Department of Finance announced it has reached an agreement with Apple Inc.to put almost $15 billion in escrow while its dispute with the European Commission over alleged unpaid taxes proceeds through the courts.

The Wall Street Journal reported this morning, however, that Ireland will begin collecting the sum "as soon as early next year" once the two sides agree to the terms of an escrow fund for the money.

While the appeals are still ongoing, the European Commission ordered Ireland to begin collecting Apple's taxes on January 3, and the organization referred Ireland to the EU Court in October for failing to comply with the deadline.

The Irish government has reached an agreement with Apple to start collecting the 13 billion euros ($15 billion) owed by the tech giant, it announced Monday.

"We have now reached agreement with Apple in relation to the principles and operation of the escrow fund", Finance Minister Paschal Donohoe told Reuters.

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With Apple's appeal still in process, the tax payments will be made into an escrow account.

The Commission in October had routinely initiated proceedings against the Government for its failure to recover the tax, which had been ruled by the Commission as an illegal favouring of the company by the Irish authorities.

Apple believes that the ruling will be overturned in time and that it's acted in accordance with the law.

Apple also said it remained "confident" that the European Union court would "overturn the Commission's decision once it has reviewed all the evidence".

The Commission ordered Ireland to collect back taxes for the years 2003-2014, which it estimated to be as much as €13bn plus interest.

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