Apple is still on the hook for a very big tax bill. It’s been almost two years since the tech giant, Apple Inc.’s, tax deals with Ireland were ruled illegal. Apple has paid 9 billion euros of the 13 billion owed, along with 1 billion in interest. But the European Union still has to pay 5 billion euros, equivalent to almost 6 billion American dollars, to be in compliance with the European Union back-tax order.
The tech giant does have the money to pay the remaining balance, as Apple reported $53.3 billion in third-quarter sales and exceeded projected sales in the fourth quarter. The money is being held in an escrow account until Apple and Ireland’s appeals have been resolved through the courts, experts say this will take years to settle.
The EU took Ireland to court last year for not getting the money from Apple in a timely enough manner. The union is demanding full repayment of what they view as illegal state aid from Ireland to Apple and has offered to withdraw the lawsuit when all the funds are transferred. Apple is expected to start making payments this quarter have the entire amount paid off by the end of the third quarter.
The case with Apple is the biggest in a wave of investigations that’s ordered several companies to repay millions of euros over tax rulings the EU claims were unfair. The EU has not finalized decisions on U.K. tax treatment with McDonald’s Corp and a few other multinational companies.