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EU launching formal investigation into Apple’s tax practices in Ireland

According to a report from Ireland’s RTE.ie, the European Commission has decided to officially launch a formal investigation into Apple’s tax practices in the country (via The Loop). An announcement is expected by EU officials tomorrow:

The European Commission is to open a formal investigation into Apple’s tax arrangements with Ireland… An announcement is expected to be made by Competition Commissioner Joaquin Almunia tomorrow… EU state aid rules are designed to prevent unfair practices, although it is not clear that countries offering favourable tax terms to companies or industries would violate such rules.

Apple last year faced U.S. Senate hearing on its offshore tax practices in which it denied taking advantage of any tax gimmicks or loopholes in Ireland. The EU shortly after launched an investigation into tax agreements with multinational companies in Ireland and number of other EU countries, while government officials in Ireland denied claims of a special 2% tax deal with Apple.

Later, in October of last year, the SEC in the U.S. ultimately closed its own investigation without establishing any wrong-doing on Apple’s part.

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Comments

  1. iSRS - 10 years ago

    Note to legislators of the world. If yo do not like companies taking all legal advantage of the tax laws that you, yourself, have put into place? Stop vilifying the companies and change your laws.

    • If Apple managed to get advantage of Irish low corporate tax rate, that’s fine. If Ireland however offered discounted 2% tax rate to Apple, that would be illegal in EU. Investigation is to see if that was in fact the case. I think it’s not Apple that under investigation here, but Irish government.

      • Jassi Sikand - 10 years ago

        I agree. Ireland’s tax practices are the ones under real investigation, not Apple’s

  2. … because they have the most moneyz

  3. Tim Jr. - 10 years ago

    America is much more willing to accept that what Apple is doing legit because thats what the tax law says.. The, if congress can get is head out of it’s *ss, change the tax law and not retroactively punish a company.

    The EU is much more willing to ‘punish’ companies for following tax law because they think the law was unfair and very likely to back charge and even levee fines.. Will be interesting to see what they do.. but I’m betting the pull out the whip and use Apple as an ‘example’…

    • Again, they are not “punishing” Apple. The investigation is into Irish tax practices and possibility that they offered discounted rate to Apple. It’s the Irish Government that is in trouble, not Apple.

  4. fredhstein - 10 years ago

    Enough. Apple follows the laws. The laws provide incentives to stimulate local economies. And basically the laws work as intended. The only issue is that Apple makes so much money. I’m fine with that.

Author

Avatar for Jordan Kahn Jordan Kahn

Jordan writes about all things Apple as Senior Editor of 9to5Mac, & contributes to 9to5Google, 9to5Toys, & Electrek.co. He also co-authors 9to5Mac’s Logic Pros series.