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Apple denies illegal state aid in Ireland, says it will stay there whatever happens

Called before the European Parliament’s tax committee yesterday to explain its tax arrangements, Apple’s VP of European operations denied that the company received illegal state aid, reports Bloomberg.

“We feel that we’ve paid every cent of tax that is due in Ireland,” Cathy Kearney said at the European Parliament in Brussels. “We don’t feel that there has been state aid involved and I suppose we look forward to that outcome happening at the end of the day and being vindicated in that way. I would say that the Irish government also agrees with that view.”

Kearney also denied suggestions that the special tax deal with the Irish company was the reason it had chosen the country as its European HQ …

She said that the company would remain “committed to Ireland” whichever way the ruling goes.

The hearing was mostly a PR exercise, the committee having no powers to order any changes. That job falls to the formal investigation into Apple’s European tax affairs, which is unlikely to end any time soon.

Apple has, however, conceded in the past that the ruling may go against it, with some estimating that more than $8B is potentially at stake.

Denials aside, it seems hard to see how the ruling could go in Apple’s favor given the strength of the evidence.

Photo: Covent Garden Apple Store, London

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Comments

  1. PhilBoogie - 8 years ago

    Good. Also, Wall St. should take notice and increase their value of AAPL.

  2. sparklehedgehog - 8 years ago

    so why use a pic of covent garden apple store for an article about the tax arrangements in Ireland??? Bizarre

    • alanaudio - 8 years ago

      Presumably because the profits from that Covent Garden store are channelled ( and taxed ) through Ireland instead of through England. There’s no suggestion that Apple are acting unlawfully, but Apple’s quote in this headline concerns the EU investigation which is considering whether such arrangements should be allowed to continue.

    • Ben Lovejoy - 8 years ago

      As Alan correctly observes, profits from that store – and all other European stores – are taxed in Ireland, not the UK.

  3. thedingohasmybaby - 8 years ago

    Does the author recall his time in London being amongst his happiest times in Ireland?

  4. John Smith - 8 years ago

    “Kearney also denied suggestions that the special tax deal with the Irish company was the reason it had chosen the country as its European HQ …”

    OK, Apple is obviously going to say the whole deal is legal and above board.

    But trying to make out that the reason they channel their income through Ireland is nothing to do with tax rate ???

  5. Michael Maguire - 8 years ago

    There are NO Apple stores here in Ireland, I’m guessing it has something to do with the tax situation regarding having it’s HQ here and being a non retail entity. The closest is in Belfast unfortunately which is regarded as the UK as it’s still under british occupation……….but that’s a whole other thread.

Author

Avatar for Ben Lovejoy Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!


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