US Tech Giant Starts Paying €1.5 Billion For EU Bill And Relocates Data Centre

; posted on
May 22nd, 2018

Apple has deposited its first payment of €1.5 billion in an escrow account in response to the €13 billion Irish tax bill due to violation of State Aid made by the European Commission. The remaining part will be recovered by a series payment in the second and third quarters of 2018.

EU Commission Excludes US Intervention

The US has sought to intervene in the case since the European Commission ruled in 2016 that Apple should pay back the tax benefit plus interest granted from the Irish government. It claimed that this ruling would increase US foreign tax credits and reduce the US tax revenues on Apple’s future repatriation of the subsidiaries’ profits. On May 17, 2018, however, the European Court of Justice (ECJ) ruled that US may not intervene in the Apple case and it upheld the decision made by the EU General Court last December, which denied the US intervention. According to the latest ruling, the US cannot intervene in this case because it cannot prove Apple will repatriate its subsidiaries’ profit and thus no direct interest relationship with this case.

Apple Plans to Cancel Its Irish Data Base

After the CJEU (ECJ and General Court) decision, Apple announced to scrap the plans to build an €850m data centre in Ireland which was proposed 3 years ago. Apple officially ascribed this cancellation to the delays in the approval process and announced to build a second data centre in Denmark at the same time.

Sources: Irish Times, The Guardian, Europa

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