Apple accused by European Commission of illegal tax deals with Ireland

The European Commission has made preliminary findings that Apple has benefited from illegal state aid after arranging deals with Irish officials in secreat, resulting in Apple paying less than 2% corporate tax for several years.

The Commission says it will publish its preliminary decision this week which  will explain why it believes that two tax agreements between the US computer, software and mobile phone maker and the Irish government – in 1991 and 2007 – were considered as illegal forms of state aid.

Apple has been in Ireland for 34 years. The company says the agreements set up with the Irish government are not illegal. The company denies wrongdoing.

Inn US Senate hearings in 2013, it was revealed that Apple had moved billions of dollars in profits out of the United States into subsidiaries around the world. The hearings sparked an investigation by European authorities. Apple insists it has paid all taxes due worldwide.

The Commission found that Apple managed to strike a special tax treatment deal with the Irish government, meaning it was able to enjoy business conditions that other companies could not giving it an edge over competitors.

More is expected on this by Wednesday of this week.

Jeffrey Newman represents whistleblowers including those living outside the U.S.