The EU's Apple tax break investigation could lead to billions of euros in fines

[Half Monk 697]

Back in June of this year, the European Commission began an investigation into the infamous tax arrangement Apple has with the Irish government. The findings from that investigation are apparently ready for prime time, and could be released as early as today. The Commission suspects the deal between Apple and the Irish government could fall into the area of illegal state-aid.

 

 

As you likely imagined, Apple has yet to speak up on the matter but has previously gone under Senate sub-committee questioning regarding the tax deal. The Irish government, on the other hand, has spoken. It remains firm in its position, stating its confident the Apple deal in no way goes against state-aid tax rules. In fact, the Irish claim to have already formally responded to the Commission hoping to address the issues at hand.

 

Ireland has always headquartered Apple’s international operation, likely due to extreme tax breaks the company receives.  Apple pays less than 2% tax in Ireland, according to reports, which obviously doesn’t sit with the Commission very well.

 

While Apple has always denied the allegations put against it, the company could have more than 20 years worth of unlawful tax breaks to deal with. According to reports, if Apple is proven to have received special treatment, it could result in billions of euros in fines.