Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Apple CEO Cook labels EU $14.5 billion ruling unfounded

Published 08/30/2016, 08:21 AM
Updated 08/30/2016, 08:21 AM
© Reuters.  Apple confirms that it will fight the EU decision in court

Investing.com – As the European Commission (EC) ruled on Tuesday that Ireland should recover up to €13 billion ($14.5 billion) in back taxes from Apple, the firm’s chief executive officer (CEO) Tim Cook responded that the ruling had no basis in fact and pledged to fight the case.

Margrethe Vestager, in charge of competition policy in the European Union (EU), said earlier on Tuesday that "the Commission's investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years."

Cook denied the allegations in a letter directed to its European customers on Tuesday.

“The opinion issued on August 30 alleges that Ireland gave Apple a special deal on our taxes,” Cook said.

“This claim has no basis in fact or in law. We never asked for, nor did we receive, any special deals,” he explained.

Cook further noted that the company had always worked with Irish tax authorities in order to comply with its laws, in line with any other firm doing business in the Celtic Tiger, as the country is known.

He furthered accused the EC of attempting to change laws retroactively.

“We now find ourselves in the unusual position of being ordered to retroactively pay additional taxes to a government that says we don't owe them any more than we've already paid,” Cook explained.

In a separate press release, Apple said that both it and Ireland plan to appeal the decision and was confident that it would be overturned in EU courts, though “the process is likely to take several years.”

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

As far as financial results, the iPhone maker said that they expect no near-term impact and the tax rate guidance would also be unaffected.

The company did note that it would probably have to place an unknown amount of cash in an escrow account that would likely be reported as restricted case on Apple’s balance sheet.

Shares in Apple Inc (NASDAQ:AAPL) were last down 1.04% at $105.71 in Tuesday’s pre-market trade.

Latest comments

Tim Cook is too focused on politics, instead of focusing on new innovative products
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.