Cook was speaking in an interview with the Irish Independent just days after the EC demanded that Apple pay the Irish government some €13bn in back taxes. “We believe that makes us the highest taxpayer in Ireland that year”, Cook told the newspaper. Vestager said: “The enforcement part of the competition portfolio does not really fit into any political picture”. Cook claims that Apple had likely been targeted because of anti-U.S. sentiment at the commission that may have been a factor in the decision to impose the bill.
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Of this only €50m was considered subject to Ireland’s 12.5% tax rate meaning Apple paid less than €10m in tax. Kenny is propped up by a number of independent lawmakers from the left and right. Now a junior minister in government, he said that while Apple should have paid more tax, it’s arrangements weren’t illegal. Shy and retiring * a href=”http://www.independent.ie/business/irish/apple-tax-row-government-should-tell-eu-to-fk-off-michael-oleary-35010094.html” target=”_blank” *Ryanair CEO Michael O’Leary told the Irish Independent that the Irish government should “write a letter to the European Union telling them to fuck off”.
Irish tax law has changed since 1980 to become more appealing to worldwide companies, but the use of an Irish subsidiary to channel billions of dollars of profits through a lower tax jurisdiction does not appear to be the company’s primary reason for opening a base there in 1980.
Ireland’s Finance Minister Michael Noonan is urging the cabinet to agree to file an appeal.
However, on the other hand, Cook said Apple remained committed to expanding its operations in the country despite the ruling.
“I think it’s a desire to reallocate taxes that should be paid in the U.S.to the European Union”.
She said the calculations of the back tax owed by Apple to Ireland were based on data provided by Apple itself and facts presented during hearings on Apple tax issues in the United States. “I’m convinced that would be crystal clear to anyone looking at this from an unbiased point of view”, Cook said on the radio.
The commission ruled that Apple had received favourable tax terms that amounted to state aid – illegal under its rules.
In an open letter on Apple’s website, Cook said Apple also plans to appeal the European Commission’s decision and is confident the order will be reversed. Any failure of the Independent Alliance group to come on board would cast doubt on the government’s survival prospects.
In Washington, U.S. Treasury Secretary Jack Lew criticised the ruling.
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“We provisioned several billion dollars for the USA for payment as soon as we repatriate it and right now I forecast that repatriation to occur next year”, he told RTE. Unfortunately, an immediate critical response from U.S. lawmakers, coupled with a slick and disingenuous public relations play from Apple CEO Tim Cook, suggests that American taxpayers will probably continue to pay the price for Apple’s tax dodging for some time to come.
