Apple granted illegal tax aid by Ireland for over 20 years, EU reveals
The European Commission (EC) has released a preliminary finding that shows Apple was granted illegal tax aid by Ireland for over 20 years.
A letter published by the EC for the Irish government elucidates on why they intend to open an in-depth investigation in June. The letter also asks Irish authorities to provide more information on their dealings with Apple in 1991 and 2007.
The official corporate tax rate in Ireland is 12.5% but because Apple is able to channel overseas sales it only pays 2%. Apple denies making any unsavoury agreements or transactions with the Irish state.
A spokesperson from the tech company told Business Insider on Tuesday: “Apple is proud of its long history in Ireland and the 4,000 people we employ in Cork."
“Apple has received no selective treatment from Irish officials over the years. We're subject to the same tax laws as the countless other companies who do business in Ireland.”
The EC claimed in the letter that “through those rulings the Irish authorities confer an advantage on Apple” that is “granted in a selective manner”.
"That advantage is obtained every year and ongoing, when the annual tax liability is agreed upon by the tax authorities in view of that ruling."
"The Commission has doubts about the compatibility of such state aid with the internal market.”
Earlier this week Ireland’s Department of Finance released a statement. It said: “Ireland is confident that there is no breach of state aid rules in this case and has already issued a formal response to the Commission earlier this month.”