EU accuses Apple and Ireland of engaging in illegal tax deals

The European Union will accuse Apple of taking illegal aid from the Irish state through sweetheart tax deals over two decades, the Financial Times reported on Monday. A European Commission investigation into Apple’s tax affairs in Ireland, where it has a rate of less than 2%, has found that the company benefited from illegal state aid, the newspaper reported, citing sources close to the matter. Ireland is favored as a European base by several major companies including Amazon, Facebook, PayPal and Twitter.

The European Commission will accuse Apple Inc of benefiting from illicit state aid in Ireland, based on preliminary findings of an investigation into tax deals, the Financial Times reported citing people familiar with the matter. Details of the probe, which may come out later this week, could leave the Cupertino-based company with billions of euros in fines, the FT reported. The Irish government, in a statement in June, said it was confident that it has not breached state aid rules and will defend its position vigorously. Apple could not be reached for comment outside regular business hours. Preliminary investigations by the European Commission into Apple’s tax deals in Ireland claim the company benefited from illicit state aid after striking illegal deals with Irish authorities, the FT reported, citing people involved in the case. The European Commission, the European Union’s competition authority, is also investigating corporate tax deals in the Netherlands, Luxembourg, as well as Ireland, following revelations about the tax-planning practices of major corporations such as Apple, Google and Starbucks.