The Commission has published non-confidential versions of two decisions taken on 11 June 2014 to open in-depth investigations into alleged transfer pricing arrangements for Apple in Ireland and Fiat Finance and Trade in Luxembourg.

In June of this year, the European Commission opened three in-depth investigations to examine whether decisions by tax authorities in Ireland, The Netherlands and Luxembourg with regard to the corporate income tax to be paid by Apple, Starbucks and Fiat Finance and Trade, respectively, comply with the EU rules on State aid.

The investigations were opened following media reports alleging that some companies received significant tax reductions by way of “tax rulings” issued by national tax authorities. The Commission has acknowledged that tax rulings as such are not problematic, as comfort letters give a company clarity on how its corporate tax will be calculated or on the use of special tax provisions. However, the Commission went on to add that tax rulings may involve State aid within the meaning of EU rules if they are used to provide selective advantages to a specific company or group of companies.

Responding in advance of the publication of the Commission’s documents, the Department of Finance noted that the Commission has not formally decided that there is State aid, only that it is formally examining this case and that a final decision in relation to this investigation will take a considerable period of time.

Further details are available on the Commission’s website.