Apple places $15 Billion in escrow.
Apple has played the tax game very well. They had an extraordinary deal with Ireland, to where they paid nearly nothing in taxes. That is quite a feat for the most profitable company in the world. Of course, this is also one of the reasons why Apple has been so profitable.
The European Commission had an issue with this agreement though. And after looking in to the situation, they ruled that Apple owes Ireland 13 billion euros ($15 billion) in back taxes. Of course, Apple didn’t agree with this, and has appealed the decision. In fact, Ireland doesn’t agree with the decision either. So why should Apple pay? The European Commission concluded that the tax arrangement was giving Apple an unfair advantage. I would agree.
While the appeal moves forward, Apple and Ireland have come to a new agreement. This time, Apple is actually paying money to Ireland. But in this case, the $15 billion is going into an escrow account, and will sit there until the conclusion of the appeal.
Will Apple finally pay fair taxes? They just might.
Source: USA Today