Apple may face billions in fines over EC probe

The Department of Finance has played down reports that the European Commission probe into Apple’s tax affairs in Ireland could lead to the levying of billions in fines on the company.

The EC is expected to publish today its ‘Opening Decision’ in the probe into Apple’s Irish tax affairs, which is part of formal state aid probes into certain multinational companies in a number of EU member states, announced in June.

Last night, the Financial Times reported that preliminary findings from the EC investigation would allege Apple engaged in “illegal tax deals” with the Government for more than 20 years, leaving it open to the possibility of fines.

It also quoted Luca Maestri, Apple’s chief financial officer, as describing the EC investigation as “very unfortunate” and denying any wrongdoing on the part of the company.

If Apple is found guilty, Ireland would be told to reclaim lost tax from one of the world’s largest firms. According to claims made in a US Senate hearing, the deal saved Apple more than $130bn over 20 years.

The investigation will not question Ireland’s 12.5% corporation tax rate, but will focus on any special arrangements between Revenue and Apple.

The Department of Finance said the EC enquiry relates to a “highly technical tax issue” and not to Ireland’s corporation tax rate.