EC May Suggest Apple Benefited from "Illegal" Irish Tax Deal

By Gary Cutlack on at

The European Commission is expected to publish a letter tomorrow, one it sent to the Irish government back in June that outlines the course its investigation into Apple's tax treatment. It's expected that it'll say the deal between Irish regulators and Apple broke EU state aid rules.

According to quotes in the FT, the EC will find that the Irish deal with Apple was tantamount to Ireland offering "state aid" to Apple, due to the way the government cut such a favourable deal with the tech giant that saw it paying tax on earnings shuffled out to Ireland at a rate of around two per cent.

The EU case centres on whether Apple managed to negotiate itself a special mates-rates tax deal that allowed it to pay less than rival firms. If so, there might be trouble involving massive fines and everyone in the Irish government having to listen to recent U2 albums. [Irish TImes]