Apple Could Pay $2.1 Billion In Interest On Unpaid EU Taxes
Apple may have to pay $2.1 billion in interest on top of unpaid taxes of $18.4 billion as ordered by the European Commission.
The EU competition watchdog demanded last August that Apple pay €13 billion plus interest in unpaid taxes to the Irish Government. An analyst at Bloomberg Intelligence said the interest could reach €1.5 billion in a worst-case scenario.
Both Apple and Ireland have appealed the decision, with hearings potentially lasting up to six years before reaching the Court of Justice of the European Union, the supreme court of the EU.
The Irish Times reported the estimated interest bill would match the total of Ireland’s capital gains, capital acquisition and customs revenue in 2016.
Apple did not make a payment by a January 3 deadline determined by the European Commission. However, the Irish finance ministry said the watchdog was satisfied with how the case was progressing.
“Once the recovery amount is computed by Ireland, the company anticipates funding it, including interest, out of foreign cash into escrow, pending conclusion of all appeals,” Apple said in its annual report.