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EU to decry Apple's Irish tax deal EU to decry Apple's Irish tax deal
(35 minutes later)
The European Commission will set out its case on Tuesday against Apple's tax arrangements in Ireland.The European Commission will set out its case on Tuesday against Apple's tax arrangements in Ireland.
The report is part of a broader EU investigation into tax policies in Ireland, Netherlands and Luxembourg.The report is part of a broader EU investigation into tax policies in Ireland, Netherlands and Luxembourg.
The Commission is examining whether these countries have unfairly favoured multinational companies including Apple, Fiat and Starbucks.The Commission is examining whether these countries have unfairly favoured multinational companies including Apple, Fiat and Starbucks.
Media reports suggest the EU will argue that Apple's tax arrangements with Dublin amount to illegal state aid. The EU will make its case that Apple's tax arrangements with Dublin amount to illegal state aid.
According to the Financial Times, the Commission will say that backroom tax deals it believes were struck between Apple and the Irish government could constitute a breach of EU regulations on state aid. The Commission will argue that backroom tax deals it believes were struck between Apple and the Irish government could constitute a breach of EU regulations on state aid.
But the paper quotes Apple's chief financial officer, Luca Maestri, as saying that Apple had never had a special arrangement with Dublin. "There's never been anything that would be construed as state aid," he said. However, Apple denies any special arrangements were in place.
"There's never been anything that would be construed as state aid," Apple's chief financial officer, Luca Maestri, told the Financial Times newspaper.
Apple says it pays all the tax it owes.Apple says it pays all the tax it owes.
'No selective treatment''No selective treatment'
Under EU law, governments are not permitted to provide state financing for individual companies. However, previously, tax arrangements have not been considered. Under EU law, state financing for individual companies is heavily restricted. However, previously, tax arrangements have not been considered.
Commission spokesman Antoine Columbani confirmed that the outline of the case against Ireland's tax policy towards Apple would be made public on Tuesday.Commission spokesman Antoine Columbani confirmed that the outline of the case against Ireland's tax policy towards Apple would be made public on Tuesday.
"The decision will set out the Commission's reasons for opening an in-depth investigation," he said."The decision will set out the Commission's reasons for opening an in-depth investigation," he said.
Following publication in the Commission's Official Journal in a few weeks' time, interested parties will have one month to submit responses.Following publication in the Commission's Official Journal in a few weeks' time, interested parties will have one month to submit responses.
In a statement sent to the BBC, Apple said: "We have received no selective treatment from Irish officials. When the probe was first announced in June Apple said: "We have received no selective treatment from Irish officials.
"Apple is subject to the same tax laws as scores of other international companies doing business in Ireland.""Apple is subject to the same tax laws as scores of other international companies doing business in Ireland."
The EU has the right to recover illegally granted state aid from the company in question. This could amount to billions of euros if Apple is found to have received benefits it was not entitled to.The EU has the right to recover illegally granted state aid from the company in question. This could amount to billions of euros if Apple is found to have received benefits it was not entitled to.