Apple’s chief executive Tim Cook has claimed that the European Commission made up its claims about the business’ tax payments in Ireland.
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Ahead of the Apple ruling, the US Treasury criticized the European Commission’s tax probe into Apple, Starbucks, Fiat (now Fiat Chrysler Automobiles), and Amazon, claiming that it should not be able to collect back-taxes on the companies in Europe.
“I feel like Ireland stuck with Apple when it wasn’t easy to stick with Apple and now we’re sticking with Ireland”, he said. Doing it this way doesn’t seem like the right approach to me.
The EC ruled Tuesday that Ireland gave Apple 13 billion euros ($14.5 billion) of illegal tax incentives, and ordered Dublin to recover that money.
Cook, however, disputed the commission’s finding that Apple had, in effect, paid corporate tax at a rate of just 0.005 percent in Ireland in 2014.
Cook told the Irish Independent newspaper that the European Union penalty was “total political crap”.
The watchdog’s landmark ruling into the iPad and iPhone maker’s tax affairs found it paid just 1% tax on its European profits in 2003 and 0.005% in 2014 after getting assurances from tax inspectors about its tax affairs and how it routed sales figures through subsidiaries in Ireland and on to the US. It is possible for a company as highly profitable as Apple to pay billions in taxes and still clock in at a super low rate.
White House spokesman Josh Earnest said US 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 USA taxes it owes. In Paris, French Finance Minister Michel Sapin backed Vestager’s view that Apple’s Irish tax arrangements amounted to abnormal state aid.
He said he would “love” to see the Government launch an appeal against the ruling.
The tech giant has been accused of an illegal deal by basing a headquarters here to take advantage of our low corporate tax rate.
“If it was up to me, the confidential version would have been published yesterday”, said Vestager.
“Apple has long supported worldwide tax reform with the objectives of simplicity and clarity”.
“It’s a false number”, Cook said. “I think we should stand up and say that very clearly”.
“It has not been diminished one iota, we are completely committed to Ireland”. A group of independent lawmakers represented in the minority coalition say they need to consult further with Noonan, tax officials and independent experts.
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“This probe has been three years underway to make sure we really have a solid case, which I firmly believe we do”. “We’re subject to the statutory rate in Ireland of 12.5pc, we paid $400m in taxes in 2014”.
