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Apple Ordered To Pay Up To $14.5 Billion in EU Tax Crackdown, Cook Refutes EU's Conclusion (bloomberg.com)
Apple has been ordered to pay a record sum of 13 billion euros ($14.5 billion) plus interest after the European Commission said Ireland illegally slashed the iPhone maker's tax bill, in a crackdown on fiscal loopholes that also risks inflaming tensions with the United States Treasury. According to the European Union regulator, Apple benefited from selective tax treatment that gave it an unfair advantage over other businesses. In the meanwhile, Apple has refuted such accusations, saying that EU's conclusion has "no basis in fact or law." EU Competition Commissioner Margrethe Vestager said, "If my effective tax rate would be 0.05 percent falling to 0.005 percent -- I would have felt that maybe I should have a second look at my tax bill." Apple CEO Tim Cook said, "Over the years, we received guidance from Irish tax authorities on how to comply correctly with Irish tax law -- the same kind of guidance available to any company doing business there. In Ireland and in every country where we operate, Apple follows the law and we pay all the taxes we owe."
Both Apple and the Irish Government have already confirmed their intent to appeal and their confidence that same will be successful.
The difference between stupidity and genius is that genius has its limits. - Albert Einstein
Freeze assets worth 14 billion Euro that are present in the EU, and/or prohibit them from doing further business in the EU till they comply. Walking away from a market the size of the EU is a tough call even with back taxes being asked for.
The american government fines european companies billions (BP, Volkswagen). Now the EU has started fining american companies in return.
It seems fair.
politicians are like babies' nappies: they should both be changed regularly and for the same reasons
Not sure why you think those are related. Operationally, Apple has only 5,000 employees in Ireland and a lot more in other places, so money needs to be pushed around. From a tax perspective, the cash in the Irish subsidiary are retained earnings, and repatriating them is necessary in order to distribute to shareholders... who are subject to US taxes.
"Long overdue"
Indeed. Being forced to accept >14 billions from Apple will teach the Irish that this is a bad idea. :-)
But seriously, this will just encourage other countries to do even worse, since now they know they'll get the billions anyway later, it's the best investment one can do.