Apple could find itself on the receiving end of a hefty $8 billion bill for back taxes as a result of the current European Commission investigation into its tax policies, according to a new report from Bloomberg Intelligence.
If the Commission decides to enforce a tougher accounting standard on Apple, the company may owe taxes at a 12.5 percent rate on the roughly $64.1 billion in profit it generated from 2004 to 2012.
Despite initially having been promised for a Christmas deadline, the last we heard is that Apple and Ireland will have to wait until February to find out whether it broke international tax rules by sheltering profits worth tens of billions of dollars in Ireland.
Apple is one of several multinational companies having their European tax affairs examined by E.U. antitrust regulators. Tim Cook has denied any wrongdoing on Apple’s part. During the recent “Inside Apple” episode of 60 Minutes, Apple’s CEO labelled accusations of tax evasion on Apple’s part as, “total political crap” and said that the company, “pays every tax dollar we owe.”
Recently Apple agreed to pay €318 million ($347 million) to settle a tax investigation in Italy. While that sums still pretty sizeable, it’s nothing compared to the $8 billion it could conceivably owe if this goes ahead.