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Apple could be liable for billions of euros in fines, as EU reportedly prepares tax accusations

Back in June, the European Commission started sniffing around Apple’s tax arrangements in Ireland, to see whether the Irish government’s acceptance of the firm’s elaborate tax avoidance tricks amounted to unlawful state aid. According to a Sunday Financial Times report, the Commission now has its preliminary findings and will this week formally accuse Apple of benefiting from illicit state aid over the course of two decades. The iPhone maker reportedly pays less than two percent tax in Ireland, where its international operations are headquartered. If Apple is shown to have received special treatment that’s denied to other companies, the firm could be liable for billions of euros in fines. Apple denies the allegations.

2 Responses to “Apple could be liable for billions of euros in fines, as EU reportedly prepares tax accusations”

  1. Mark Watson

    From the BBC (http://www.bbc.co.uk/news/business-29406438)

    “Following publication in the Commission’s Official Journal in a few weeks’ time, interested parties will have one month to submit responses.

    Once the Commission has reached a judgement the EU has the right to recover illegally granted state aid from the company in question. This could amount to billions of euros if Apple is found to have received benefits it was not entitled to.”

  2. This is sensationalist drivel. The Commission will only lay out the scope and areas of its concern this week. This is not like competition law where, after due process, the Commission has the power to fine. The issue here will be about whether Apples transfer pricing is reasonable and fair. A case will need to be made in court and argued successfully. This show could run for years and may well go nowhere.