What happened to the money collected in Ireland? Why is this bad for an economy

Ireland’s government has fully recovered more than €14bn (£12.4bn) in disputed taxes and interest from Apple, which it will hold in an escrow fund pending its appeal against a European Union tax ruling.

The European commission ruled in August 2016 that Apple had received unfair tax incentives from the Irish government. Both Apple and Dublin are appealing against the original ruling, saying the iPhone maker’s tax treatment was in line with Irish and EU law.

Ireland’s finance ministry, which began collecting the back taxes in a series of payments in May, estimated last year the total amount could have reached €15bn including EU interest. In the end the amount was €13.1bn in back taxes plus €1.2bn interest.

While the €14.3bn would be enough to fund the country’s health service for a year, the government said it had never given any company a special deal and that the appeal was important to preserve Ireland’s attractiveness for investment.

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