Apple’s Chief Executive Tim Cook described the European Union $14.5 billion tax ruling as “total political crap”, but France joined Germany on Thursday in backing Brussels as transatlantic tensions grow. Both Ireland, which has made low corporate taxes a cornerstone of its financial policy, and Apple, one of hundreds of US companies with operations in Ireland, have said they’ll appeal the ruling.
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“It’s total political crap”, Cook said of the figure. Unfortunately it’s one of those things we have to work through.
With his comments, Cook echoes criticism from both Republicans and Democrats in the us, who claim the regulatory ruling could end up costing the American taxpayer. While the Commission wants back taxes to be paid, Mr. Cook says he wants to bring these accumulative profits back to the United States but not at the current high corporate tax rate of almost 40%.
Cook continued to push for worldwide tax reformation but says any change should not happen retroactively, as the European Commission is attempting to act.
Tax harmonisation is making taxes identical between regions, which can mean increasing tax in low-tax jurisdictions or reducing tax in high-tax jurisdictions.
The Irish Government is split over how to respond to the European Commission’s order.
White House spokesman Josh Earnest said USA taxpayers could ultimately bear the brunt of the decision, if Apple is forced to make the payment, because the company then could deduct the billions it pays Ireland from the US taxes it owes.
He suggested that this process will happen next year.
“Beyond the obvious targeting of Apple, the most profound and harmful effect of this ruling will be on investment and job creation in Europe”. The outcome is unclear if Ireland decides not to appeal; will Apple then be fighting another battle?
Cook refused to say what Apple would do if Ireland decided not to appeal the Commission’s decision, saying only that he was confident the country would “do the right thing”.
“We’re not going to let an invalid ruling alter our deep commitment to Ireland”, he said. The conclusion of the EU Commission investigation has also been criticised by the US Treasury.
He added: ” I think both parties feel like the decision is wrong, is not based on law or facts.
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“It’s like playing a sports game and winning the championship and then finding out the goals are worth less than you thought they were”, he told RTE.
