Apple has been accused of sheltering profits through its Irish base for years, culminating in a three-year probe to decide whether this was illegal, and now looks set to be hit with a large fine.
Both Reuters and the Financial Times are claiming that a press conference, held later today by EU competition commissioner Margrethe Vestager, will call for a fine of ‘billions’ of euros.
However, other outlets are disputing that number, claiming it could only run to the hundreds of millions, and one minister claiming it could be as low as €100 million (around £85m / $110m / AU$147m).
Apple has previously been accused by a Senate committee of using Ireland to avoid paying tax on its US income, something the company has denied.
Who’s done what?
The issue here is not whether Apple’s practices in Ireland have been illegal, but whether Ireland has offered specific companies favourable tax deals, which would be considered ‘state aid’ and is unlawful.
All sources quoted in this case are clear that Apple and the Irish Government will appeal the ruling, believing that the arrangement between the companies is lawful and adheres to the correct tax laws.
“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,” the department of finance in Dublin told the Guardian in 2015.
What this means for the consumer is unclear, but if the worst case scenario happens and Apple is forced to pay €19 billion (around £16bn / $21bn / AU$28bn), the largest number predicted by analysts), this could impact the cost of iPhones, iPads and other services as the brand looks to make up the profit margins elsewhere.
However, even if a ruling does appear today requiring a large fine from the EU, that will only be a recommendation as the Irish authorities will be tasked with calculating the exact number.
The appeals process will also drag the whole process out, so the final figure Apple could be hit with is a long way from set.
- This story will be updated as more information becomes available.
Source: techradar.com
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Like Google and Microsoft don't do the same thing, those big corporations are all the same.
Great! So they will make iphones even more expensive to pay for this and keep their profits up, rather than eat into their already huge profit margins.. Glad they don't get my money
F em'! Pay Ireland the 19 billion, hell, make it 20. They make insane profits on the price margins alone and don't even want to pay tax.
Oh Apple, you little tax dodger you
Nothing wrong has happened its well known that the EU coffers are empty and with the UK leaving they need to try and get any money they can.
The "Fine is about as enforceable as a par park notice of payment.
Apple should tell them to go to hell.