Apple reaches deal with Ireland over $15B tax ruling

Apple reaches deal with Ireland over $15B tax ruling

Apple is just one of many technology companies whose tax arrangements in Europe have been criticized.

Apple today reached an agreement with the European Union to begin depositing the €13 billion ($15.4 billion) in back taxes it was ordered to pay Ireland past year, following the landmark decision to crackdown on tax shelter policies and profit offshoring, according to The Wall Street Journal.

Starting next year, will have to start paying Ireland back billions of back taxes.

"We have now reached agreement with Apple in relation to the principles and operation of the escrow fund", said Paschal Donohoe, the finance minister.

Both Apple and Ireland will still appeal the ruling despite Apple agreeing to make a payment. The money will be held in escrow while both Ireland and Apple appeal the decision by the European Commission. Though some governments have responded with the tax holiday workaround-essentially meeting the companies in the middle by offering temporary tax breaks to bring the money home-that's backfired big time.

Ireland's low tax deals to large companies has been a key role in the country's economic success.

"We have a dedicated team working diligently and expeditiously with Ireland on the process the European Commission has mandated", an Apple spokesperson said in an emailed statement.

The money is going to start being paid in early 2018, but in a statement, Apple said it remained confident that the General Court of the European Union will "overturn the Commission's decision once it has reviewed all the evidence".