“When you’re accused of doing something that is so foreign to your worth, it brings out an indignation in you, and that’s how we feel”.
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The EU’s most powerful business regulator has dismissed accusations of political bias from Apple chief Tim Cook.
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”, he said in the interview.
Apple was found to be holding over $181 billion in accumulated profits offshore, more than any USA company, in a study published a year ago by two left-leaning non-profit groups, a policy critics say is created to avoid paying U.S taxes. The European Commission also said that Ireland’s tax laws enables Apple in this regard.
In any case, the EU Commission keeps considering the sweetheart tax ruling between Apple and Ireland as State aid.
Earlier this week the EC said existing arrangements struck between Dublin and Apple broke European rules on state aid.
Although both Apple and the Irish government are expected to appeal the ruling, the company will still have to deposit the money in an escrow account – something Cook confirmed in his interview. Despite what’s going on, Cook says Apple will continue with its plan to expand in Cork, noting that the company is “very committed to Ireland”.
“It’s a false number”.
It said that member countries should adopt a tax model with companies to avoid cases like Apple.
Although the exact amount of the fine isn’t clear as yet, the European Commission estimates Apples gains at around $14.5 billion and the commission has the authority to fine them for a period of ten years preceding 2013 which was when the first information request was lodged. And I think that [anti-U.S. sentiment] is one reason why we could have been targeted. Two subsidiaries of Apple that is based in Ireland called Apple Operations Europe and Apple Sales International paid over most of their profits to a certain head office.
The EU Competition Commissioner stressed she’s certain the Apple-Ireland ruling will prevail against any appeal in court.
Mr. Cook said he expects Apple’s own appeal against EU’s decision to succeed.
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Despite the mammoth tax bill, Apple insists it will not abandon Ireland, where it has about 6,000 employees and is planning to build a huge data centre. Most importantly, the commission completely ignores the fact that the vast majority of those profits was subject to USA taxation. “We believe we’re the largest taxpayer there”.
