Apple tax deal with Ireland: EU decision expected by end of the year

Photo of author

By Larry Banks

Ireland has indicated that it expects European Union (EU) regulators to come to a decision on the country’s tax arrangement with Apple this year, according to the country’s finance minister on Monday. The move could mean that Apple will ultimately have to pay a huge amount of back taxes.

Apple tax arrangement with Ireland under scrutiny

The European Commission has recently told the Dutch government that they must recover up to 30 million Euros from the US coffee chain Starbucks, with Luxembourg ordered to do the same with Fiat Chrysler.

The rulings regarding Apple and Amazon tax deals with Luxembourg are currently pending.

The Irish Finance Minister Michael Noonan said that the Commission should announce the decision by the end of the year. “We are expecting an adjudication on Apple maybe in the next few weeks but certainly between now and Christmas,”, Noonan said en route to a euro zone finance ministers’ meeting.

“It remains to be seen whether that is adverse or negative but (we) will deal with that when the announcement comes”.

Apple already stated earlier in the year that the EU investigation could have a material impact on its finances. It’s unknown at this point how Apple would react to a negative outcome in terms of further investment in Ireland and other EU member states.

SOURCE: Reuters.

Images Courtesy of DepositPhotos