Billions in Apple back-taxes to move into holding account within two months

The funds will remain in the Escrow account for as long as the case remains before the courts

Billions in Apple back-taxes to move into holding account within two months

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The Government expects Apple to begin paying billions of Euro in back taxes into a holding account within two months.

Officials from the Department of Finance have informed TDs that the process to set up a special Escrow account to hold the funds is on target.

Apple was ordered to make the payment by the European Commission after it ruled that the company had been given unfair tax incentives by Ireland.

Apple and Ireland are both appealing the ruling.

This afternoon John Hogan, assistant secretary of the Tax Division of the Department of Finance said the process of appointing a custodian agent to receive the funds is almost complete.

He said he expects the funds to begin flowing into the Escrow account “through the course of quarter 2 as early as possible.”

Quizzed by Fianna Fáil’s Marc MacSharry on whether the funds would be in the account “within two months” he replied “that is our estimate, yes.”

He said the process of establishing the account has cost the State €2.5m so far.

He said the fund would soon begin paying for its own administration – meaning the costs are not expected to rise substantially.

Officials also confirmed that no other countries have yet made a claim to any of the back taxes.

In late-January, the Taoiseach insisted that Ireland is one of the most transparent countries when it comes to tax.

He said the government will be contesting the Apple case every step of the way, adding that it could be before the courts for “many years.”

The funds will remain in the Escrow account for duration of the legal proceedings.