Tim Cook this week met with the European Commission’s antitrust chief Margrethe Vestager, Bloomberg reports and Kristin Huguet, a spokeswoman at Apple, confirms. The Cupertino based company is fighting back against contentions that they have formed a special agreement with Ireland in which they pay significantly lower taxes to the country’s government. The news also appears to coincide with Tim Cook’s announcement in launching an iOS development center in Italy.
European Commission January 21
European Commission January 15
With a recent European Commission ruling making it look more likely than ever that Apple’s tax arrangements in Ireland will be declared illegal, Bloomberg has been doing the sums on how much the company may owe in back tax. The total? More than $8 billion.
Apple funnels all its European revenue through Ireland, where a special agreement with the Irish government means that it pays just 2.5% tax instead of the normal 12.5%. A long-running European Commission investigation into the legality of this arrangement was recently extended and expanded its scope.
Assuming the agreement is ruled to be illegal, it would be the Irish government – and not Apple – who broke the law, but Apple would still have to pay the difference between the tax it actually paid and the full amount that would have been due without the deal. The company warned shareholders last year that it may have to pay ‘material’ back taxes, but the figure calculated by Bloomberg is much larger than earlier estimates …
European Commission January 11
European Commission December 14, 2015
The long-running investigation into the legality of Apple’s tax arrangements in Ireland has been expanded, with the European Commission now seeking additional information from the Irish government, reports the FT. This means that the investigation is likely to be extended well into next year. A ruling had originally been expected before the end of the year.
While Irish authorities had expected the case to be concluded soon, they have instead been sent bulky sets of supplementary questions, meaning it will be difficult to reach a final verdict until after the 2016 election, which is expected as early as February […]
The Irish finance ministry confirmed that the government was supplying the requested additional information to the commission. “We do not expect any decision until after the new year,” said a spokesman.
If the ruling goes against Apple, it could face a bill for billions of Euros in underpaid tax …
European Commission November 11, 2015
Update: Apple has since stated that Cook intended to describe the Microsoft Surface Book as “diluted” rather than “deluded.”
The Irish government has announced that Apple will be employing an additional 1,000 staff in Ireland, the country where the company declares much of its revenue from sales throughout Europe, reports Reuters.
Ireland’s main foreign investment agency, the IDA, said Apple was to add 1,000 jobs to its office in Cork by mid-2017 from 5,000 at present. It said the company had also added 1,000 jobs in the past year.
There had been some concern about whether Apple would maintain a significant presence in the country if the European Commission investigation into Apple’s tax dealings in the country went against the company … expand full story
European Commission May 4, 2015
Allegations that Apple is engaging in anti-competitive practices in the run-up to the launch of its rebranded Beats streaming music service are now being investigated by the Department of Justice, according to “multiple sources” cited by The Verge.
The claim is that Apple has been attempting to use its influence to persuade music labels to pull out of deals with free, ad-supported services like Spotify and YouTube in order to reduce competition and increase demand for its own paid service. The European Commission launched an investigation into these same allegations last month …