CNBC reports the European Commission will rule against Apple’s tax dealings with Ireland, and and will push for the recovery of over $1 billion Euros in back taxes. The European Commission decline to comment when contacted by CNBC.
The European Commission accused Ireland in 2014 of dodging international tax rules by letting Apple shelter profits worth tens of billions of dollars from tax collectors in return for maintaining jobs. Apple and Ireland rejected the accusation and have both said they will appeal any adverse ruling.
A source familiar with the situation told Reuters that the Commission will recommend a figure to be collected, but it will be up to Irish authorities to calculate the amount owed by Apple. Apple has long relocated much of its earnings to Ireland, allowing the company to pay a corporate tax rate as low as 2%, compared to the 35% it would be required to pay in the United States.
The Cupertino firm first relocated its overseas operations to iReland in 1980. but didn’t Make the tax deal with Irish authorities until 1991.
Apple did not respond to media requests for comment, and Irish authorities say they are prepared for the decision, but deny any wrongdoing.
“We don’t believe we gave any state aid to Apple,” Eoghan Murphy, junior finance minister, told broadcaster RTE, according to a report by Bloomberg. “It’s in the national interest that we defend our international reputation in this regard.”