DUBLIN, Ireland - Following a ruling by the European Commission made in August 2016, the iPhone maker Apple Inc has made the disputed tax payment in full to Ireland.
Ireland recovered 13.1 billion euros in the disputed taxes from Apple, along with the interest of 1.2 billion, which will be held in escrow fund.
In a statement on Tuesday, Ireland’s finance minister Paschal Donohoe said that the escrow fund is pending an appeal against an EU tax ruling.
Donohoe said, “While the government fundamentally disagrees with the Commission’s analysis and is seeking an annulment of that decision, as committed members of the European Union, we have always confirmed that we would recover the alleged State aid."
He added that Ireland’s finance ministry began collecting the back taxes in a series of payments in May and has appointed investment managers to oversee the disputed cash.
Donohoe added that the managers appointed would make low-risk investment decisions and the Irish taxpayer would be protected from any losses.
The payment comes after the European Commission ruled in 2016, that Apple had received unfair tax incentives.
However, the original ruling was appealed by both Apple and Dublin.
Both Apple and the Irish government had argued that the iPhone maker’s tax treatment was in line with Irish and European Union law.
On Tuesday, the Irish government reiterated its argument that it has never given any company a special deal and that the appeal is important to preserve Ireland’s attractiveness for investment.