Apple's Tim Cook meets with EU antitrust chief ahead of decision on Irish taxes
Earlier on Thursday Apple CEO Tim Cook attended a private meeting in Brussels with Margrethe Vestager, the head of the European Commission's antitrust efforts, presumably in an attempt to diminish the chances of owing billions in back taxes because of the company's Irish tax deals.
The meeting's existence was confirmed by both Apple and the Commission, Bloomberg reported. Neither party was willing to share the topic of discussion.
The Commission is however in the middle of investigating whether the Irish government extended illegal state aid to Apple in the form of tax deals. Apple is known to have exploited Irish loopholes for years to pay extremely low rates on international revenue, possibly as small as 1.8 percent. Ireland's normal corporate tax rate is 12.5 percent.
A ruling could be issued as soon as March, but the investigation is already on a delayed schedule and information gathering is still said to be ongoing.
The matter also has high stakes, as Apple could theoretically owe over $8 billion, and Irish political parties are split on the matter. While Prime Minister Enda Kenny has vigorously denied that Ireland is a tax haven, and promised to fight any EU ruling against the country, the opposition Sinn Fein party has said it would be willing to pursue money owed by Apple.
EU aid rulings have already been issued against companies like Fiat and Starbucks and countries like Belgium, Luxembourg, and the Netherlands, which may not bode well for Apple and Ireland.
The meeting's existence was confirmed by both Apple and the Commission, Bloomberg reported. Neither party was willing to share the topic of discussion.
The Commission is however in the middle of investigating whether the Irish government extended illegal state aid to Apple in the form of tax deals. Apple is known to have exploited Irish loopholes for years to pay extremely low rates on international revenue, possibly as small as 1.8 percent. Ireland's normal corporate tax rate is 12.5 percent.
A ruling could be issued as soon as March, but the investigation is already on a delayed schedule and information gathering is still said to be ongoing.
The matter also has high stakes, as Apple could theoretically owe over $8 billion, and Irish political parties are split on the matter. While Prime Minister Enda Kenny has vigorously denied that Ireland is a tax haven, and promised to fight any EU ruling against the country, the opposition Sinn Fein party has said it would be willing to pursue money owed by Apple.
EU aid rulings have already been issued against companies like Fiat and Starbucks and countries like Belgium, Luxembourg, and the Netherlands, which may not bode well for Apple and Ireland.
Comments
jmgregory1 said: Then you'll be glad to know that this is not what this case is about
This case is about allegedly ilegal state aids to some companies in Ireland, not about taxation in the EU
Now, on a separate note - AI, will you please stop using “revenue” when you mean “profit”. These two things are not the same. Companies pay tax on profits, not revenue.
Isn't this similar situation here?
I'm genuinely curious, and I ask you as the blog's expert on this topic .... why on earth didn't Ireland's allegedly Illegal tax incentive scheme get immediately investigated and stopped by the EU? Or didn't the EU know? It all seems a complete f***k up and from where I sit, Apple is surely an innocent party here along with the other companies that accepted Ireland's deal.
As for Apple and EU Commission, probably Cooke got a phone call to get his behind to Brussels to beg for mercy and soften the news of the $8B in back taxes they will be slapped with pretty soon. And may I remind those that don't understand what this case is about, the $8B will not go to the EU, they will go to Ireland, as Ireland established an illegal state-aid with Apple and failed to collect the proper amount of taxes.
I am not saying that wherever it is currently will stand, but it's not the best news (on top of everything else that is out there now).
Because as have been said a lot of times, they were secret agreements between Irish government and some companies.
"I will make it legal."
The EU are claiming Apple had a secret sweetheart deal that gave Apple a tax rate not available to other companies.
This rate the EU claims is illegal state aid according to the treaty of Rome and the treaty of Mastricht.
If Apple and Ireland are found guilty and any appeal is lost. Apple will have to pay back taxes they will have deemed to avoided.
At the moment it is not looking good for Apple for the initial ruling but it still has a long way to go before any final ruling is given.