The French government and Apple reached a compromise over unpaid corporate taxes following a multi-year audit by the French tax administration which will see the US tech giant pay €500 in back taxes.
In 2016, Apple was ordered by the European Commission to pay Ireland €13 billion in corporate back taxes.
France is spearheading a movement towards fair corporate taxation and is determined to move unilaterally on a tax that will target digital behemoths for their turnover in the country. The so-called “GAFA tax” (Google, Apple, Facebook, and Amazon) follows the failure to form a consensus on an EU level.
The tax targets companies that make more than €25 million a year in France and/or €750 million globally. It is projected to raise an addition €500 million a year.