DUBLIN — The European Commission yesterday ordered U.S. tech giant Apple to pay Ireland the equivalent of $14.5 billion in unpaid taxes on its foreign profits. <br /> <br />Up until 2014, Apple had a sweet tax deal with Ireland, where its subsidiaries registered in the country hold IP rights to the company’s products outside of North and South America. <br /> <br />Apple subsidiaries Apple Sales International and Apple Operations Europe are both registered in Ireland. <br /> <br />Around 90 per cent of Apple’s foreign profits are earned by these two companies, the Financial Times reported. And there’s nothing illegal about that. <br /> <br />The EU’s beef is that only a tiny bite of the profits were taxed in Ireland before the bulk of the cash was sent to another Apple subsidiary that isn’t tax-registered anywhere. <br /> <br />Even though $14.5 billion would put Ireland back in the black, the Irish government doesn’t want the money, according to the Wall Street Journal. <br /> <br />It fears jeopardising Ireland’s long-term relationship with Apple, which employs 5,500 people in the country. <br /> <br />The U.S. is also not happy with the EU, because Uncle Sam has his eye on taking a slice of Apple’s profits for the U.S. Treasury. Apple has around $215 billion sitting in its foreign subsidiaries, which has never been taxed in the U.S., according to the Wall Street Journal. <br /> <br />Apple said it will hold the $14.5 billion in escrow while it appeals the EU’s decision.
