A RULING from the European Commission could force Apple to pay billions of euros in back taxes over the company’s tax arrangements with the Irish government.
The ruling, expected on Tuesday, follows a three-year probe into the tech giant’s Irish tax affairs. Margrethe Vestager, the European competition commissioner, is expected to declare the arrangements unlawful under state aid rules.
Apple and Ireland have denied repeatedly that they have a special deal.
Sources familiar with the decision told Reuters the EC will recommend a figure in back taxes that it expects to be collected, but it will be up to Irish authorities to calculate what is owed.
Investment bank JP Morgan has said if Apple is forced to retroactively pay the Irish corporate tax rate of 12.5% on its pre-tax profits collected via Ireland it could cost the company as much as $19bn (£15bn).
Any bill in excess of €1bn would be far more than the €30m each the EC ordered Dutch authorities to recover from Starbucks and Luxembourg from Fiat Chrysler for tax deals. Both companies and countries have appealed those decisions.
Introduced in 2013 to encourage R&D investment, the scheme allows UK businesses to pay only 10% corporation tax on profits derived from any UK or certain EU patents
Yet, KPMG’s annual survey shows that the UK is still an attractive place to do business, despite falling in rankings in tax competitiveness and FDI appeal
MTD cost estimates are not based on 'facts', and are 'disbelieved' by most small businesses and sole traders, says Lords committee chairman
MTD represents 'the single most significant change to the UK’s system of taxation in recent times', says Knill James partner Nick Rawson. So, how prepared are SMEs for digital tax reporting?