Apple: US tax payment does not change Irish tax ruling
Apple’s recent announcement that it will pay USD $38 billion in U.S. tax on its overseas cash will not reduce the USD $16 billion tax bill which the company owes Ireland following a European Union ruling, according to the EU’s executive.
In 2016, there was a ruling that Apple received illegal state aid in Ireland through sweetheart tax deals with the government. At the time of the ruling, the Commission stated that the amount Apple would be required to pay to Ireland may be reduced if other countries found the company should have recorded its sales there rather than in Ireland, or alternatively if its European subsidiaries were to pay more tax to the U.S. parent company.
Although, Apple’s announcement on Wednesday the 17th of January that it would pay approximately USD $38 billion in one-time U.S. tax payments on its overseas cash do not match any of these criteria.