Apple CEO Tim Cook has gone on the offensive and has not held back in his criticism of the European Commission (EU). Apple and Ireland have a long standing relationship and Apple has long benefited from the country’s preferred tax regulations. Over the past few years however, the EU has been looking to get their share of the Apple pie and launched an investigation into the special tax treatments.
As a result of this investigation, the EU has passed down a ridiculous ruling ordering Apple to pay back €13 billion in taxes back to the Irish government. According to the report, the EU claims that “Ireland granted undue tax benefits of up to €13 billion to Apple”. Commissioner Margrethe Vestager specifically stated “Member States cannot give tax benefits to selected companies – this is illegal under EU state aid rules. The Commission's investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years. In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1 per cent on its European profits in 2003 down to 0.005 per cent in 2014."
Let’s be clear, this is nothing more than a money grab attempt by the EU and Tim Cook has not wasted time in firing back at the Commission. After detailing the lengthy partnership with Ireland dating back to 1980, he went on to tear a strip off the EU in a statement released after the report. “"The European Commission has launched an effort to rewrite Apple’s history in Europe, ignore Ireland’s tax laws and upend the international tax system in the process” said Cook. Furthermore, he went on to state: “This claim has no basis in fact or in law. We never asked for, nor did we receive, any special deals. We now find ourselves in the unusual position of being ordered to retroactively pay additional taxes to a government that says we don't owe them any more than we've already paid.”
On Thursday September 1st, Cook has also doubled down on his criticism of the EU and the ruling calling the it “political crap” in an interview with the Irish Independent. I would encourage you to check out the article, it’s a good read. Here is the link: http://www.independent.ie/business/irish/no-one-did-anything-wrong-here-and-ireland-is-being-picked-on-it-is-total-political-crap-apple-chief-tim-cook-35012145.html
Let’s be honest here, the ruling is frivolous and has virtually no chance of being enforced. The EU has no power to tax its members or corporations and is not an official government. Furthermore, Apple has enough clout, lawyers and cash to drag this through the courts for decades.
That being said, Apple versus the EU will be an engaging battle and we will be entertained my a very quotable Tim Cook.
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With various member states looking at leaving the EU in the aftermath of BREXIT the ruling is potentially even more meaningless as the EU could well fall apart long before anything ever happens anyway. If there is a court battle regarding it then the funds required would be enormous and likely drive a wedge deeper into the EU with various people wondering why they are contributing ever higher taxes for such a stupid ruling!
I could not agree more. This is just making the EU even more irrelevant and trying to force tax rulings upon their members will only anger their membership.
Desperate times for the EU hey, trying to grab onto some semblance of control.
apple will probably covertly start instigating EU's dismiss simply to dodge the taxes.
Well if the Irish government never wanted them to pay those taxes and feels that nothing is owed then why should Apple pay them? As a little perspective I am far from an Apple fan, I dislike the way they operate in terms of user agreements, software limitations and connectivity issues. I respect their business though and if the Irish government believes everything has been paid fairly then that should stand as is without EU interference.
I can confirm Apple doesn't ask for favors. It's in corporate policy the company doesn't get involved in lobbying they don't even have a PAC here in the States.
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