The Irish finance ministry announced Tuesday it expects to receive Apple’s ‘back tax’ payment in the first quarter of 2018. Ireland has been ordered by the European Commission to collect the tax from the tech giant, as it ruled Apple had been in receipt of illegal state aid.
Apple shares ended lower Tuesday, closing down 0.09% at $169.64. And, early pre-trade activity has the tech shares heading further into the red.
EU Apple tax decision challenge
While the Irish finance ministry is putting things in place to receive and secure the €13 billion the EC has ruled Apple owes in taxes, it also disputes the ruling made over 12 months ago.
"These sums will be placed into an escrow fund with the proceeds being released only when there has been a final determination in the European Courts over the validity of the Commission's Decision," the Irish Finance Ministry said.
Dublin has lodged an application for the Commission’s decision to be overturned.
Apple is also unhappy with the decision and has lodged its own dispute.
"The Commission's case against Ireland has never been about how much Apple pays in taxes, it's about which government gets the money,” and Apple spokesperson said, according to a BBC report.
“The United States government and the Irish government both agree we've paid our taxes according to the law,” the Apple statement read.
Apple expects China apps to be reinstated
The Irish tax issue aside, Apple is also working hard to be full accepted by the Chinese Government.
Earlier this year, China requested that Apple remove a number of its apps from iPhone handsets, as they don’t conform to China’s cyber rules. The global tech firm has been criticised for adhering to the request.
However, Apple’s CEO Tim Cook says he’s confident many of the apps will be reinstated, and that he’s very pleased with how the iPhone X launch has gone in China.
“My hope over time is that some of the things, the couple of things that’s been pulled, come back. I have great hope on that and great optimism on that,” Cook said while at the Fortune Forum in southern China.