The European Commission has finally finished its investigation into Apple’s tax breaks with Ireland and it appears that the company will be slapped with a fine for more than $1 billion in back taxes.
The commission’s final ruling is expected to come tomorrow, according to a new report that claims Ireland will be expected to calculate exactly how much Apple owes.
“The Commission will recommend a figure in back taxes that it expects to be collected but it will be up to Irish authorities to calculate exactly what is owed,” reports CNBC, whose sources say Dublin will be expected to collect atleast one billion euros.
The ruling comes after a three year investigation into Apple’s tax practices in Ireland, where it enjoys a 2% rate compared to the average 12.5% rate for the rest of the country. Ireland vowed to close the loophole Apple and other tech giants have been using, meanwhile Apple recently announced its bringing 1,000 more jobs into the country.
An early estimate from JP Morgan claimed Apple will owe up to 19 billion euros in back taxes. Another study suggested the figure would come in at $8 billion.
Europe’s competition commissioner Margrethe Vestager will provide the estimate for Apple’s tax bill when the European Commission presents its findings to the public tomorrow.
