Preliminary findings by the European Commission have slammed Apple and Ireland for a so-called “sweetheart” tax deal which allowed Apple to avoid paying taxes by building up a massive offshore cash pile of $137.7bn in the country.
The deal dates back to 1991, and allowed Ireland to provide Apple with illegal state aid. Apple has had a base in the country since 1980.
In a statement, the European Commission said that “the Irish authorities confer an advantage on Apple,” and that this “advantage is obtained every year and ongoing.”
The European Commission has the power to impose large fines: potentially up to 10 percent of a company’s turnover, in addition to a €1bn fine for Ireland.
If the EU findings are upheld, Apple’s tax liability could be recoverable from as far back as 2003 through the present day.
Apple, for its part, has denied any wrongdoing whatsoever, saying that it “has received no selective treatment from Irish officials over the years.”
Source: Sky News