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Apple To Put $16B In Escrow For EU Row Over Irish Taxes
25 April 2018, 03:16 | Clyde Nash
Image Credit Reuters
The news comes nearly two years after an investigation by the European Commissioner for Competition, Margrethe Vestager, led to a ruling that forcedApple to pay €13bn in back taxes to Ireland.
Irish taxpayers will not have to cover any potential losses if a fund holding €13 billion in back taxes from Apple drops in value before legal proceedings have concluded, the finance minister has said.
Donohoe said the escrow arrangement for "the recovery of alleged state aid" would be signed sometime on Tuesday.
Back in 2017, Ireland faced the prospect of being fined by the European Union for non-compliance with the governing body's ruling.
Describing yesterday's agreement as a "significant milestone" the Minister said that the agreement means that the Government can proceed and appoint investment managers to look after the fund.
Apple is expected to pay in multiple installments, with all money transferred by the end of this year's third business quarter.
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The source said the Obama administration had investigated similar claims in 2016 but did not take any action. The Apple Watch 3, Google Pixel 2 smartphone and Microsoft Surface all have eSIM abilities, for example.