European Commissioner Joaquin Almunia released a much-anticipated letter Tuesday that details the watchdog’s stance on companies’ practice of tax avoidance.
The Commission is eyeing Ireland and other member states for their partnerships with foreign companies including Apple, Fiat and Starbucks, which relocated their tax bracket to the EU for cheaper rates. The Commission is reviewing those agreements on suspicion they may constitute illegal state aid in breach of EU competition law.
On Tuesday, the Commission published a letter sent by Almunia to Ireland detailing tax deals struck in 1991 and 2007, declaring that those deals amount to state aid. Almunia stopped short of labeling those deals as illegal, however.
But the letter did reveal that the Commission’s stance on such agreements is clear: “The Commission is of the opinion that through those rulings the Irish authorities confer an advantage on Apple.”
The letter was dated June 11, say reports.
Both Apple and Ireland deny claims that the tax deals unfairly favored Apple. But authorities say their agreements were “reverse engineered” to ensure Apple had the lowest possible tax bill from Ireland. Reports say that Apple could be facing billions of dollars in fines if the agreements are found to be illegal by the EU.
The Commission is also reportedly investigating similar tax agreements made between Starbuck and the Netherlands, and Fiat and Luxembourg.
Full content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Uruguayan Antitrust Scrutiny Puts Major Meatpacking Deal Between Marfrig and Minerva on Hold
May 19, 2024 by
CPI
Alaska Airlines Seeks Dismissal of Consumer Lawsuit Over $1.9 Billion Hawaiian Airlines Buy
May 19, 2024 by
CPI
Idaho Attorney General Orders Split of Kootenai Health and Syringa Hospital
May 19, 2024 by
CPI
Court Rejects T-Mobile’s Appeal Bid in Antitrust Case Over Sprint Merger
May 19, 2024 by
CPI
Google Requests Judge, Not Jury, to Decide on Antitrust Case
May 19, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI