Daily Tax Update - August 30, 2016: European Commission Rules Apple Received 'Special Tax Treatment' From Ireland

European Commission Rules Apple Received ‘Special Tax Treatment’ From Ireland:  Today, the European Commission (Commission) ruled that Ireland granted Apple, Inc. “selective tax treatment” that gave it a “significant advantage over other businesses."  The Commission ordered Apple to pay $14.5 billion (€13 billion) in back taxes, plus interest – the largest penalty in the Commission’s three-year initiative targeting corporate tax avoidance.  Both Apple and the Irish government vowed to appeal. 

EU state-aid investigations have been criticized in the United States, including by both the Treasury Department and Congress.  For prior DTU coverage, click here.  

IRS Issues Final Regulations Clarifying Definition of REIT Real Property:  Today, the IRS issued T.D. 9784, its final regulations clarifying the definition of real property for purposes of the real estate investment trust (REIT) tax provisions (IRC § 856).  These final regulations, which take effect on August 31, adopt the proposed regulations in REG-150760-13 (issued May 14, 2014) with some modifications, as explained in the Treasury decision.