Ondrej Holzman Apple's tax practices in Ireland were scrutinized by the US government a year ago, and the company has been relatively quiet since then. However, now the European Union is also preparing to examine the actions of the Californian giant in Ireland. Apple is in danger of having to pay back taxes, which could mean billions of dollars in the end.
Last May, Apple CEO Tim Cook had to testify in front of US senators, who didn't like that Apple is moving its money to Ireland, where he pays less taxes as a result. Cook however he reported, that his company is paying every dollar it owes in taxes, and in October to him she was right also the Securities and Exchange Commission.
But while the US senators practically only accused Apple of taking advantage of the conditions in Ireland, the European Union would like to deal with Apple and two other large companies - Amazon and Starbucks - that use similar practices to Apple. Both the Irish and Apple understandably reject any unfair agreements.
"It is very important that people know that we have not made a special deal in Ireland. In the 35 years we've been in Ireland, we've only followed the local laws," said pro Financial Times Luca Maestri, Apple's CFO.
However, the European Commission should present its first findings in the case this week. The key will be whether Apple pressured the Irish authorities to reduce its tax liabilities, which ultimately resulted in illegal state aid. Apple argued with the Irish government about taxes in 1991 and 2007, but Maestri denies that Apple threatened, for example, to leave Ireland if it did not receive concessions.
"If there is a question whether we tried to reach an agreement with the Irish government in the style of 'something for something', it never happened," says Maestri, who replaced Peter Oppenheimer as CFO this year. According to Maestri, negotiations with Ireland were quite normal as with any other country. "We didn't try to hide anything. If a country changes its tax laws, we will follow those new laws and pay taxes accordingly.”
Apple has two main arguments against the accusation that it did not pay as much in taxes as it should have. In addition, Maestri adds that corporate taxes in Ireland have increased tenfold since the introduction of the iPhone in 2007.
Apple does not like the fact that the European Commission intends to apply the directives on the taxation of multinational branches retroactively, which, according to the Californian company, is misleading and incorrect. At the same time, Apple wants to convince that the rates agreed with the Irish government are adequate and comparable to similar cases of other companies.
However, if the European Commission still came to the opinion that Apple concluded an illegal agreement with the Irish government, both parties would be in danger of having to compensate for the last 10 years of illegal cooperation. It is too early to speculate on the amount, as Maestri also says, but the fine would almost certainly surpass the European Union's previous record of one billion euros.
Whatever the outcome of the case, Apple is not going anywhere from Ireland. “We stayed in Ireland through the good times and the bad times. We've grown here over the years and we're the biggest employer in Cork," says Maestri, who says Apple plans to work with Brussels. "We are a very important contributor to the Irish economy."
Also, that Apple exists, about whom everyone else would write and throw all the dirt?! Yes, even Apple is a company that wants to make profits and did everything that others did, which for some unknown reason is not talked about!!
So I wish for him that all the critics and clever people run away and finally the envious people start to care about something else as well. Maybe they will also analyze companies like Vertu, Audi, BMW, etc., etc., because it is unprecedented.
How
Unfortunately, it is. When you are such a big company. with insane value, turnover and earnings.
You break the charts in units sold, etc.
There is no other way. Logically, they can't leave you alone. People are holy.. and this is how it goes with this inexorable grinder of the industry.. dirt, dirt, you're good.. then more dirt. And repeat.
I can't see into this. But I'd say it'll hold up in Cupertino. Hello