The European Commission is preparing to launch a formal investigation into Apple’s Irish tax affairs on Wednesday, marking a significant step up in the global crackdown on tax evasion.
The investigation will centre on Ireland but EU diplomats expected that the net could be thrown much wider to include a number of companies taking advantage of tax breaks in other European countries such as Luxembourg and the Netherlands.
The move by Brussels opens the question of whether companies received rulings that breach the EU’s rule book on state aid – a regime that bans tax breaks to favoured businesses that would create serious distortions of competition.
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