Lots of money from Apple: What Ireland is doing with a huge back tax payment
The Republic of Ireland will receive a good 14 billion euros including interest from Apple as a fine, imposed by the EU. This is what happens with the money.
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Now that the long-running tax dispute between the EU and Apple has ended with a final payment to the Irish treasury, Dublin is wondering what to do with the total of 14 billion euros (including investment profits and interest). According to a report by the British BBC, initial decisions have now been made.
Bridges, transportation, energy
According to the report, the warm rain of money is to go into a large investment package – and make up a large part of it. The so-called National Development Plan (NDP) currently has a budget of 112 billion euros and is a package of infrastructure measures. The Irish government plans to spend the money between 2026 and 2030 to tackle measures in the areas of energy, water, transport and housing (which is under severe pressure in Ireland). A good one billion euros of the money will also go towards the Shared Island Fund, which aims to improve infrastructure and cooperation between Northern Ireland and the Republic of Ireland – with new bridges and road links, among other things.
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For example, Apple could (co-)pay for a connection over the Narrow Water Bridge between Down in the south and Louth in the north. Overall, the NDP and Apple Cash will provide the "largest investment in economic and social infrastructure in the history of the state", according to Taoiseach Micheál Martin. Work will begin immediately. Martin predicted "a significant increase in the volume and quality of public investment in critical sectors", which was urgently needed.
Long-standing conflict over tax-saving model
The EU Commission and Apple have been at loggerheads for years over the company's tax-saving model in the Republic of Ireland, where Apple has been based since the 1970s. The EU assumed that the low tax rate that Apple paid on its profits, some of which were routed through Ireland, constituted an illegal subsidy.
After several rulings at the highest EU level, some of which were won by Apple and some by the EU, it was finally determined that Apple had to pay back €13 billion. The company placed this in an escrow account managed by several investment companies. The very last transfer to the Irish treasury was made in the spring of this year.
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