Peter Flanagan, Bloomberg:
The Irish government is setting up a fund to manage the estimated 13 billion euros ($15.2 billion) it will collect from Apple Inc. in back taxes, nearly a year after the European Commission ruled the country had provided a sweetheart deal on tax to the U.S. firm.
The government and Apple will jointly appoint a custodian to hold the money to be deposited by the iPhone maker, the finance ministry said in an emailed statement. The funds will be held in escrow pending appeals by Apple and Ireland, which could take years. One or more investment managers will also be hired to manage the money.
And from Apple:
“The European Commission’s case against Ireland has never been about how much Apple pays in taxes, it’s about which government gets the money,” said Apple spokesman Josh Rosenstock. “The United States government, the Irish government and Apple all agree we’ve paid our taxes according the law. Since virtually all of our research and development takes place in the United States, according to the law, we pay the majority of our taxes in the U.S.”
The appeals process is just beginning. It could be years until this is resolved.