American tech firm Apple has confirmed that it's to comply with a ruling from the European Commission and pay Ireland billions owed in taxes.
For several years, Apple has only been paying one per cent on corporation tax in Ireland, but this was due to an agreement between the firm and the country.
However, last year, the Commission came to the ruling that this is an example of illegal state aid and threatened Apple with harsh consequences if it didn't cough up $13 billion in owed taxes.
The BBC reports that Apple is paying the money into a so-called blocked "escrow" account and that Ireland is in the process of appealing the Commission's decision.
Having long disputed the ruling and failing to collect the tax, the case was sent to the European Court of Justice. Ireland is still adamant that the ruling is wrong.
Apple has made a string of investments in the country over the last few years, and the Irish Government fears that the tax bill will affect jobs.
Ireland is looking to get the decision annulled and has filed an application in the General Court of the European Union. It's unknown how long this process will take, though.
The Irish Finance Ministry said: "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."
Apple believes that the ruling will be overturned in time and that it's acted in accordance with the law.
"The Commission's case against Ireland has never been about how much Apple pays in taxes, it's about which government gets the money," the firm said in a statement.
"The United States government and the Irish government both agree we've paid our taxes according to the law."
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