“Apple boss Tim Cook made a surprise visit to Brussels on Thursday to lobby the EU’s antitrust chief weeks before she is set to rule on a landmark case that could force the California-based technology company to pay billions in underpaid taxes to Ireland,” Christian Oliver reports for The Financial Times. “”
“The EU’s probe into Apple’s Irish tax arrangements has become one of the most politically-charged cases pursued by Brussels since it took on Microsoft two decades ago,” Oliver reports. “Coupled with its antitrust case against Google, it has sparked accusations in Washington that European commissioner Margrethe Vestager is unfairly targeting the US technology sector. A spokesman for Ms Vestager confirmed she held a ‘private meeting’ with Mr Cook, but gave no further details.”
MacDailyNews Take: Hopefully, Cook is playing the hardest hardball possible.
“Dublin is known to be angry about what it believes is unfair treatment of Apple, and its officials worry Ms Vestager’s staff has changed their legal arguments in the run-up to a decision on whether to order a repayment of back taxes,” Oliver reports. “Mr Cook’s personal intervention is a sign that Apple is worried about the direction of Ms Vestager’s inquiry, especially after she ruled in October that Luxembourg and the Netherlands had provided improper tax benefits to the Italian carmaker Fiat and the US coffee shop chain Starbucks — the first such rulings in her expanding corporate tax probe. Those cases are now being appealed… [Critics] accuse the commission of using the state aid weapon retroactively to trample over tax arrangements that were made in full accordance with Irish law.”
Read more in the full article here.
MacDailyNews Take: As we wrote last November:
Apple has repeatedly and confidently stated that they didn’t do anything that was against the law. Therefore, unless the EC tries to change the law retroactively, if that’s even possible, or tries to collect taxes retroactively in some other fashion, Apple is in the clear.
“There was no special deal that we cut with Ireland. We simply followed the laws in the country over the 35 years that we have been in Ireland. If the question is, was there ever a ‘quid pro quo’ that we were trying to strike with the Irish government – that was never the case. We’ve always been very transparent with the Irish government that we wanted to be a good corporate citizen… If countries change the tax laws, we will abide by the new laws and we will pay taxes according to those laws.” – Apple CFO Luca Maestri
SEE ALSO:
Think Ireland’s corporate tax is unfair? Wave goodbye to Apple and thousands of jobs if it’s changed – November 14, 2015
Apple announces 1,000 new jobs in Ireland as EU tax ruling nears – November 11, 2015
Apple tax probe won’t hurt Ireland, Finance Minister Noonan says – October 5, 2015
EU’s Vestager says will not complete tax inquiries of Apple, others in second quarter – May 5, 2015
Apple warns of potential ‘material’ financial damage from European tax probe – April 29, 2015
Apple may have to pay Ireland 10 years of back taxes – April 30, 2015
Ireland’s Prime Minister: Apple has nothing to fear from end of ‘Double Irish’ tax avoidance strategy – November 4, 2014
Apple says it may lose Irish tax break – October 31, 2014
Ireland to end tax lures that drew U.S. firms – October 14, 2014
EU tax probe spotlights Ireland’s allure for multinationals – October 13, 2014
EU watchdog to give reasons for inquiry into Ireland’s tax treatment of Apple – September 29, 2014
European Commission accuses Apple of prospering from illegal Irish tax deals – September 28, 2014
EU threatens expanded probe into Ireland’s tax practices regarding Apple, Googles, other companies – June 20, 2014
EU’s investigation of Apple’s taxes isn’t going to cause the company any problems – June 13, 2014
EU launches tax avoidance investigations on Apple, Starbucks, Fiat – June 11, 2014
Not in Taxes anymore: On site at Apple’s famous Irish ‘headquarters’ – November 2, 2013
Regan: U.S. tax code spurs loveless foreign corporate ‘marriages’ – May 13, 2014
Ireland to close Apple’s tax loophole, but leave bigger one open – October 15, 2013
G20 think tank OECD proposes blueprint for global crackdown on tax avoidance – July 19, 2013
Thomas Sowell on Apple, corporate taxes, and ‘the road to serfdom’ – May 28, 2013
Taxing Apple just taxes you – May 24, 2013
Don’t tax Apple, tax its shareholders – May 24, 2013
If Apple paid more tax, we might pay less or something – May 22, 2013
Apple CEO Tim Cook pounds another nail into the Keynesian coffin – May 22, 2013
Apple CEO Cook makes no apology for company’s tax strategy – May 22, 2013
[Thanks to MacDailyNews Reader “David E.” for the heads up.]