Apple Warns Of 'material' Earnings Impact In Ireland Tax Probe

Apple Inc. has warned that an ongoing tax probe in Ireland could have a "material" impact on the company's earnings, operating results and cash flow if there is an unfavorable ruling. The investigation, opened by the European Commission in June 2014, is determining whether Ireland gave Apple's Irish subsidiaries an unfair corporate tax advantage based on a pre-determined profit allocation. Apple said it believes the assertions are "without merit," but said an unfavorable decision could require Ireland to recover past taxes for a period of up to 10 years, which "could be material." The iPhone maker said it has not yet been able to estimate a potential impact an unfavorable ruling would have on operating results and cash flow, and said there can be "no assurance as to the outcome of these examinations." The warning came in the company's 10Q, filed with the U.S. Securities and Exchange Commission on Tuesday. Shares of Apple fell 1.16% to $129.04 in recent trade, though they remain up 52% over the last 12 months. The company reported blow-out first-quarter earnings and sales on Monday.