Value of Apple escrow fund sinks by €36m

Decline 'primarily reflects the current negative interest rate environment and negative yields on highly-rated euro-sovereign, quasi-sovereign bonds, and fund operating expenses'

The account was established by the Government to hold the €14.3bn in alleged back taxes and interest which the European Commission ordered Ireland to collect from tech giant Apple.

The value of the escrow account established by the Government to hold the €14.3bn in alleged back taxes and interest which the European Commission ordered Ireland to collect from tech giant Apple has fallen by €36m, according to Department of Finance figures.

According to the department, the value of the Ireland Apple Escrow Fund stood at just over €13.98bn as of the end of 2020.

“The €36m decline for the year primarily reflects the current negative interest rate environment and negative yields on highly-rated euro-sovereign, quasi-sovereign bonds, and fund operating expenses,” the department said.

The fund still exists despite last year’s ruling, by the EU’s general court, that overruled the previous European Commission determination and stated that Ireland did not give Apple illegal state aid.

The commission had previously decided that Apple owed Ireland €13.1bn in back taxes; a figure which rose to €14.3bn when interest was added.

An appeal by the European Commission against the general court judgment, has been lodged with the European Court of Justice.

The escrow fund will remain in place until a final determination is made by the European courts, at which time the funds held in escrow will be released by the State.