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
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
8 responses to “EU tax probe could fine Apple 10% of earnings since 2003”
It would be the country that is fined, not the company according to Forbes expert op-ed a few days ago. Ireland is hardly in a position to pay such an amount, and the optics overall are not that good for the EU to harm the corporations that actually do pay tax – as opposed to some that pay ‘no tax’. At some point, the EU may price itself out of these companies and their products .. and their employment capacities.
Interesting that the Europeans get all tough with Apple and other companies that they know will comply with the law, when it is proven they are not in compliance. Yet on many real problems in the EU’s backyard, like the Ukraine and Russia .. hardly a whimper from the overstuffed prigs they have as leaders.
“EU tax probe could fine Apple 10% of earnings since 2003”
The EU can’t fine Apple, and they won’t try.
And that 10% fine isn’t even on the table as a possibility. The Wall Street Journal quotes an international tax expert who estimated the back taxes will only amount to $200 million.
CoM is such a troll site. BS story is BS. Your parents must be prouder of your hooker sister.
Stay classy, San Diego.
Okay, admittedly his response wasn’t very cool but this story is just so full of holes and misinformation (in just a few paragraphs!) that even I’m tempted to chalk it up to a troll story. It’s easily the worst I’ve seen on the subject and I’ve looked at many.
F.ck EU!
The EU is just jealous that they have no computer company as successful as Apple.