Irish legislature invites Tim Cook, other Apple execs to hearing on $14.5B EU tax ruling
An Irish legislative committee is reportedly optimistic that Apple CEO Tim Cook will accept an invitation to attend a late January hearing, which will examine the European Commission's ruling that Ireland must collect $14.5 billion in back taxes from the iPhone maker.
An invitation to Cook and other high-level Apple executives was sent out by the chairman of the Oireachtas Finance Committee, John McGuinness, the Irish Times said. Defending and explaining the ruling will be the European Union's Commissioner for Competition, Margrethe Vestager.
After a lengthy investigation, the Commission concluded in September that Ireland offered preferential tax breaks to Apple, something constituting illegal state aid -- under E.U. law, such breaks have to be offered to all companies equally. Similar decisions have been rendered against other countries and businesses.
Both Apple and the Irish government are contesting the ruling. While the latter nominally stands to benefit, it's believed to be concerned about scaring away other multinational corporations, which could take jobs and other economic benefits with them. Apple has already vowed to stay in the country, and even expand its footprint.
The company has insisted that it did nothing wrong and simply followed the law. It and other businesses have long used Ireland as a tax haven, however, exploiting loopholes to pay slim amounts on millions or billions in international revenue. At least some of those loopholes are now being closed.
An invitation to Cook and other high-level Apple executives was sent out by the chairman of the Oireachtas Finance Committee, John McGuinness, the Irish Times said. Defending and explaining the ruling will be the European Union's Commissioner for Competition, Margrethe Vestager.
After a lengthy investigation, the Commission concluded in September that Ireland offered preferential tax breaks to Apple, something constituting illegal state aid -- under E.U. law, such breaks have to be offered to all companies equally. Similar decisions have been rendered against other countries and businesses.
Both Apple and the Irish government are contesting the ruling. While the latter nominally stands to benefit, it's believed to be concerned about scaring away other multinational corporations, which could take jobs and other economic benefits with them. Apple has already vowed to stay in the country, and even expand its footprint.
The company has insisted that it did nothing wrong and simply followed the law. It and other businesses have long used Ireland as a tax haven, however, exploiting loopholes to pay slim amounts on millions or billions in international revenue. At least some of those loopholes are now being closed.
Comments
There is a good chance that the EU will not exist soon. More member countries will be telling them to piss off soon, just like the UK did.
And if something no longer exists, then you won't have to worry about paying them any money.
I wouldn't bet on that horse. Yes a few counties might leave, but there is no provision for shutting down the EU even if half the countries left. I've heard nothing about an Irish exit, so this thing has to play out. I just find it amusing/surprising/admirable that the major Irish parties are trying to stand up to the EU about this--given they could easily get billions in tax revenue (from a foreign company) and blame it on the big, bad EU. That sounds like excellent politics to me.
The taxing and development authorities in Ireland have made the right choice in standing firm against EU close minded anti-open market within a market policy. Cook and company have every reason to be invited and to attend this meeting. Likely that they will file a friend of the 'defense' brief or similar filing and make Apples position crystal clear at the hearing/meeting, if given the forum.
Someday, someone will explain this to me. I suspect Cook is dead on regarding following the law [and perhaps its unintentional consequences] but the issue is fix the law, not blame Apple or other companies for exploiting the complex national and international tax codes, laws, and conventions.
The particular case raised by the EU was not Apple doing something illegal, but rather Irish Law was illegal in EU commission opinion. This obviously being contended by the Irish Government as wrong and over-reach by the EU into national law affairs.
I don't understand your comment on Irish law. EU directives are accommodated in the laws of its member states so if it is a law of the EU, it is also a law in the member state.
If you read the summary of the investigation and take everything at face value, Apple's accounting practices can be seen as 'dodgy'.
It isn't only the amount of tax paid, but the amounts Apple 'made available' for taxation.