State-aid investigators from the European Commission are seeking new information from Dublin on the tax affairs in Ireland of Apple, one of the world’s largest companies.
The development has delayed the commission’s long inquiry into the Apple case for a second time in six months.
Although the Government had expected the commission to release findings in the next fortnight, the request from Brussels for more data has prompted speculation in Irish circles that it will be well into the new year before any findings are made.
“Initially we had expected a decision before Christmas. Since then, the commission has asked for further information, which we are providing to them,” said a spokesman for the Department of Finance.
“It now seems more likely that the final decision will not be reached until some time in the new year.”
The Government is bracing for adverse findings from the investigation, which is examining if Apple received “selective” advantage in tax opinions from the Revenue in 1991 and 2007.
Appeal to Europe
This is denied in forceful terms by the Government, Revenue and Apple, which insist there was not a breach of state-aid rules. Dublin has said it would appeal any negative findings by the commission to the European Court of Justice.
With the general election now likely to be held in February, close observers in Dublin believe the commission might be reluctant to release findings in the middle of the campaign.
Such thinking was dismissed outright by a well-placed source in Brussels. However, the case remains highly sensitive for Dublin.
A negative ruling could prompt demands to recover up to 10 years of back taxes from Apple, which could run to many billions of euro. With that in mind, any delay in the Apple ruling until the election is settled and the next administration takes office could push back the release of findings until March or April.
EU competition commissioner Margrethe Vestager initiated the inquiry in June 2014 after her office issued preliminary findings against Ireland. She had set a deadline to release findings by June this year but declared in May that more time was required. There was no comment from Ms Vestager’s office on whether the timing of the election would be a consideration when scheduling the release of findings.
On a visit to Dublin last week, Apple chief Tim Cook said the company would support the Government in any appeal should the ruling be negative. Apple will remain committed to staying here even if Brussels ruled against its Irish arrangements, he said. JP Morgan, Apple’s investment banker, has said the firm could be on the hook for $19 billion (€17.8 billion) in a worst-case scenario.
