Apple under scrutiny by EU competition watchdog

Apple's Ireland operation is having its tax affairs examined by the EU's competition watchdog

legal hammer

Apple is being investigated by the EU's competition watchdog for paying less tax through its Ireland HQ, resulting in calls of unfair competition and allegations the actions are tantamount to illegal state aid.

Antoine Colombani, spokesman for European Union Competition Commissioner Joaquin Almunia said: "In this case, we have doubts that through tax rulings a company may have been granted selective treatment, preferential treatment, compared with what another company under the same rules, the general rules of the Irish tax system, would have received."

Advertisement - Article continues below

Apple has operated in Ireland since 1980, meaning the company has paid a much lower rate of tax in comparison to headquartering the company in the UK. Ireland's corporation tax stands at 12.5 per cent, but Apple receives a more preferential rate of two per cent because it reports some sales through subsidiaries.

The reason Ireland adjusts its rates of tax is to attract investment and jobs to the country from multinationals like Apple. Other examples of large companies that run operations from Ireland include Google, Cisco, eBay, Facebook, Dropbox and Amazon.

State financing is not allowed under EU law, but this rule doesn't take into account legacy arrangements.

Ireland's Department of Finance responded to the EU's Competition Commissioner saying: "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, addressing in detail the concerns and some misunderstandings contained in the opening decision."

Advertisement
Advertisement - Article continues below

Colombani said the outline of the case against Apple would be made public later today (Tuesday), with the publication of its finding appearing in the Commission's Official Journal in a few weeks' time. Apple can then respond to claims if it feels the information is not accurate.

Featured Resources

The case for a marketing content hub

Transform your digital marketing to deliver customer expectations

Download now

Fast, flexible and compliant e-signatures for global businesses

Be at the forefront of digital transformation with electronic signatures

Download now

Why CEOS should care about the move to SAP S/4HANA

And how they can accelerate business value

Download now

IT faces new security challenges in the wake of COVID-19

Beat the crisis by learning how to secure your network

Download now
Advertisement

Recommended

Visit/mobile/mobile-phones/355761/apples-ios-135-update-targets-coronavirus-related-iphone-issues
Mobile Phones

Apple’s iOS 13.5 update targets coronavirus-related iPhone issues

22 May 2020
Visit/mobile/mobile-phones/355747/apple-reportedly-delaying-iphone-12-launch-until-october
Mobile Phones

Apple reportedly delaying iPhone 12 launch until October

21 May 2020
Visit/careers/28228/ciso-job-description-what-does-a-ciso-do
Careers & training

What does a CISO do?

20 May 2020
Visit/mobile/mobile-security/355702/fbi-and-justice-department-accuse-apple-of-stalling-terrorist-probe
mobile security

FBI and Justice Department accuse Apple of stalling terrorist probe

19 May 2020

Most Popular

Visit/operating-systems/microsoft-windows/355812/microsoft-warns-against-installing-windows-10-may-2020
Microsoft Windows

Microsoft warns users not to install Windows 10's May update

28 May 2020
Visit/security/data-breaches/355777/easyjet-faces-class-action-lawsuit-over-data-breach
data breaches

EasyJet faces class-action lawsuit over data breach

26 May 2020
Visit/security/cyber-security/355797/microsoft-bans-trend-micros-rootkit-buster-from-windows-10
cyber security

Microsoft bans Trend Micro driver from Windows 10 for "cheating" hardware tests

27 May 2020