The European Commission’s investigation into Ireland’s tax deals for multinational corporations could have a “material” impact on Apple, the company said in a 10Q filing to the S&E Commissions this week. If it’s determined that Dublin’s tax policies represented unfair state aid, the Cupertino firm could suffer significant losses.
“If the European Commission were to conclude against Ireland, it could require Ireland to recover from the company past taxes covering a period of up to 10 years reflective of the disallowed state aid,” the company wrote. “And such amount could be material.” It’s unknown at this time how much it would owe in back-taxes.
The EU began a formal investigation against Ireland in June last year for alleged state aid to Apple, after suspicion arose that it was giving the company significant discounts on taxes in exchange for jobs and other perks. It’s believed the iPhone-maker saved as much as $9 billion in the so-called “sweetheart tax arrangement.”
“The company believes the European Commission’s assertions are without merit,” Apple said in the filing. Apple’s European headquarters sits on a large campus that employs over 4,000 in Cork, Ireland. It’s so important to the city that in 2012, the City Council voted to expand its boundaries to accommodate the company.
Source: Financial Times