Apple’s Cook calls European tax ruling ‘total political crap’

In the past, Cook has said he’s resistant to bringing that money back because the company would have to pay up to 40 percent in federal and state taxes on it.

TIM COOK has accused the European Commission of getting its sums wrong in the investigation into Apple’s tax affairs in Ireland this week, arguing that the company has paid all tax due in full, and that the amount it has paid is far greater than the sum the EC has suggested.

“We have been committed to Ireland for 37 years; we have had a long-term romance together and I’m pretty confident the government will do the right thing and I think the right thing here is to stand up and fight”, Cook told RTE, speaking from California.

Margrethe Vestager, the European Commissioner in charge of competition policy said Apple’s tax deal had “enabled it to pay substantially less tax than other businesses over many years”. Here is the truth.

The watchdog’s landmark ruling into the iPad and iPhone maker’s tax affairs found it paid just 1% tax on its European profits in 2003 and 0.005% in 2014 after getting assurances from tax inspectors about its tax affairs and how it routed sales figures through subsidiaries in Ireland and on to the US. He calls the decision “wrongheaded”, and specifically refers to the 0.005 percent tax rate claim as a “false number”. He has decried the recent European Union ruling that Apple should play Ireland €13bn in back taxes.

“I feel like Ireland stuck with Apple when it wasn’t easy to stick with Apple and now we’re sticking with Ireland”, he said. We believe these changes should come about through the proper legislative process, in which proposals are discussed among the leaders and citizens of the affected countries.

Cook took the same line, telling the Irish Independent he believed the commission’s move arose from “a desire to reallocate taxes that should be paid in the U.S.to the European Union”.

Apple is just the latest US company to be targeted. He said he expected that repatriation to occur next year.

And if you shirk at the steep prices of Apple gear now, just imagine how those prices could shoot up should Apple’s tax bill be brought into line with those that don’t have such shrewd accountants.

It was a skilful and very nuanced performance [by Mr Cook on RTE], but one which obscured a few key truths.

She also defended earlier statements on Apple’s low tax rate. Apple now has 6,000 people working in the country and is planning on opening a new facility in Cork.

But the actual payment of those taxes is deferred – till when, nobody knows.

But Vestager said the numbers were obtained from Apple itself, while others dating from 2011 came from United States hearings.

In fact, the scramble to avoid paying tax at 35% is the reason the whole structure exists in the first place.