On Thursday, Mr. Cook, in an interview with Irish state broadcaster RTE, appeared to go a step further, saying Apple could start to move some of the profits it has earned from its global operations to the USA next year.
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BRUSSELS-A war of words has erupted between Europe’s competition chief and Apple CEO Tim Cook after Ireland was ordered to reclaim €13 billion (£11.1 billion/$14.5 billion) in back taxes from the company.
Update 10.50am: Apple boss Tim Cook thinks the tax ruling against his company is going to cause a rift between the U.S. and the EU.
After a three-year investigation, the Commission said Ireland had empowered Apple to pay substantially less than other businesses, in effect paying a corporate tax rate of no longer than 1%.
“They just picked a number from I don’t know where”, Mr Cook told the Irish Independent, estimating Apple’s average annual tax on its profits at 26 per cent.
Apple paid taxes at the 12.5% rate – a total of $400 million – in 2014, he said.
“It’s clear, I believe, to the Irish government, it’s clear to us and it’s clear to the USA officials … there were no special deals”, he said.
“Member states can not give tax benefits to selected companies – this is illegal under EU state aid rules”, said the European competition commissioner Margrethe Vestager.
In the past, Cook has said he’s resistant to bringing that money back because the company would have to pay up to 40 percent in federal and state taxes on it.
Cook said he would “love” to see the Government appeal the ruling.
He said Apple is “very committed to Ireland”. The EC said that “undue benefits” granted to Apple amounted to illegal state subsidies, and will need to be recovered.
She also rejected Cook’s claim that her decision was politically motivated. But Apple has also long suggested it wasn’t considering moving any of that money back soon-until there was corporate tax code changes in the usa that would make such a move less costly.
Cook’s stance falls in line with his open letter on the situation from earlier in the week, first providing backstory about Apple’s history in Ireland and then remaining hopeful that the ruling will ultimately be overturned.
The White House, however, termed the European Union order for Apple to pay taxes to Ireland as unfair.
“It’s maddening; it’s disappointing; it comes from a political place – it has no basis in fact or law”, he added.
However, an emergency cabinet meeting of Ireland’s minority government on Wednesday failed to agree, with some ministers demanding a parliamentary vote on the issue.
“I think that Apple was targeted here”, he said.
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She had dismissed the notion that Apple and Ireland could genuinely believe such a low rate was with the bounds of the law.
