Special tax deals granted to Apple in Ireland may in fact be illegal, according to a new Wall Street Journal report.
European Union regulators indicated that the tax deals in question “constituted illegal state support for the companies.” In a letter to the Irish government, regulators stated that they had reached the “preliminary view” that the tax deals with Apple from 1991 and 2007 technically constituted state aid, in that the deals gave Apple an advantage which was “granted in a selective manner.” Apple responded to the allegations as it has in the past, stating that the company has “received no selective treatment from Irish officials over the years,” and that it is “subject to the same tax laws as the countless other companies who do business in Ireland.” An Irish government official stated that Ireland is confident no rules were breached in this matter.
While the antitrust investigation is still in the early stages, a final ruling against the tax deals could result in Apple having to pay up to $200 million in back taxes to Ireland.
