How will the Irish government spend Apple’s €14bn?

Published On Sep 15, 2024, 2:20 AM

The EU's highest court has mandated Ireland to collect €14 billion in back taxes from Apple due to an illegal tax deal, presenting the Irish government with a significant windfall. The government is considering how to utilize this amount. Options include paying down national debt, which would reduce it by nearly 8%, investing in infrastructure to address significant needs in energy, water, and housing, or establishing a sovereign wealth fund to support economic stability and achieve a target of €100 billion by 2035. However, there are concerns about inflation and lack of available workers for large infrastructure projects.

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Apple may face increased scrutiny and potential financial repercussions due to the ruling requiring back taxes, which could impact its profitability in the short-term. However, the long-term effects might be mitigated if Apple adapts its tax strategies.

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