Google’s Irish operations are coming under closer scrutiny from Europe over corporate tax affairs, reported Bloomberg. Irish authorities held “in- depth” talks with European Union officials late last year on whether the company complied with European Union rules limiting tax perks provided by European governments.
The review was preliminary and might not lead to any formal investigation, the person with knowledge of the review said. According to another person, an EU investigation isn’t imminent and some Irish authorities are optimistic that initial conversations proved sufficient to avoid a more extensive probe of the company’s tax arrangements. Irish Finance Minister Paschal Donohoe discussed a potential tax case with EU Competition Commissioner Margrethe Vestager, one person said.
The EU has been clamping down on efforts by multinationals to reduce their tax bills in Europe. The European Commission ruled in August 2016 that Apple had received unfair tax incentives from Ireland.
Apple, which has its European headquarters in Cork, deposited €14.1 billion in disputed taxes and EU interest into an escrow account late last year. The company is appealing against the decision, along with the Irish Department of Finance, which denies there was a sweetheart deal.
Full Content: Bloomberg