Report: EU accuses Ireland, Apple of improper tax deal

Cupertino, Calif. – Following an investigation launched in June, the European Union (EU) is reportedly formally accusing the Republic of Ireland and Apple of striking an improper deal that has kept Apple’s taxes in Ireland artificially low since 1991. According to CNN, the arrangement has allowed Apple to pay a tax rate as low as 2% on earnings of Irish subsidiary.



The top corporate tax rate in Ireland is 12.5%. “State aid” from governments to corporations is illegal under EU regulations, and Apple may have to pay billions of dollars in back taxes if the EU finds state aid was given. Both the Irish government and Apple have denied any wrongdoing, and both will have a chance to dispute the charges as the investigation is ongoing.