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European Commission reportedly launching Apple Ireland tax query

updated 02:05 pm EDT, Tue June 10, 2014

Regulatory officials concerned that Ireland offered low tax rates as incentive

Europe's antitrust and consumer investigation agency, the European Commission, is allegedly opening up an inquiry into Apple's tax practices in Ireland. The review reportedly magnifies existing efforts looking at the business arrangements of many multi-national companies that have a presence in Ireland, and will focus on whether Apple was given special tax treatment to set up shop.

US Senators, led by John McCain (R-AZ), believe that Apple got an exceptionally lower tax rate in the country for its European headquarters, which helps it reduce its US tax burden. McCain had claimed that Apple negotiated a deal with the Irish government back in 1980 to lower the tax bill of the Ireland-based holding company that manages most of Apple's foreign operations to two percent.

Both Apple and the government of Ireland refute the claims. The iPhone maker points out that it has had offices and production facilities in Ireland since the 1980s, long before any recent corporate tax rates or changes in the law have taken place. An announcement of the probe is expected as early as June 11, reports RTE News.

By Electronista Staff
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  1. Feathers

    Grizzled Veteran

    Joined: 10-09-99

    This should be reported in the context of a competition to appoint the next President of the EU. Whilst Germany favours the Luxembourgish candidate Mr. Junkers, many others are deeply opposed to this and, in light of few acceptable alternatives, favour the Irish compromise candidate Mr. Kenny. This "tax haven" assertion is an attempt to distract attention from Luxembourg's own money laundering activities over the past seventy years or so. One thing is certain, Ireland has never handled or funnelled Nazi plunder.

  1. FastiBook

    Fresh-Faced Recruit

    Joined: 02-17-05

    What does the senator have to gain, is my question.

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