EU Accuses Ireland Of Sweetheart Tax Deals

The European Commission has issued a report accusing Ireland of illegally subsidizing Apple in the form of tax breaks. According to the report, Ireland might be compelled to collect back taxes, which analysts said could total billions of dollars. The finding has fueled efforts by U.S. lawmakers to change the tax rules that allow multinationals to escape taxes in their home country by relocating certain operations abroad. Senator Carl Levin said the European report validated a Senate panel’s finding that Apple received a tax rate of less than one percent in Ireland. The report found that Irish tax officials discussed with Apple representatives the size of the profit they wanted from the Irish branch, then doctored the tax bill accordingly.