A report from Ireland’s RTE News indicates the European Commission has decided to launch a formal investigation into Apple’s tax practices in that country. EU officials are expected to officially announce the probe on Wednesday.
The European Commission is to open a formal investigation into Apple’s tax arrangements with Ireland… An announcement is expected to be made by Competition Commissioner Joaquin Almunia tomorrow […] EU state aid rules are designed to prevent unfair practices, although it is not clear that countries offering favourable tax terms to companies or industries would violate such rules.
Apple executives last year faced a U.S. Senate hearing over its offshore tax dealings. The company denied any wrongdoing by taking advantage of any tax loopholes in Ireland. Shortly following the Senate hearing, the EU launched an investigation into tax agreements with multinational companies in Ireland and other EU countries. Government officials in Ireland denied any claims of a special 2% tax deal with Apple.
The SEC closed their own investigation of Apple in October of 2013, without establishing any wrong doing on Apple’s part.