Sam Oliver
Initially slated for mid-June, the European Commission's investigation into Apple's tax arrangement with Irish authorities will not be completed until later in the year, Europe's competition chief said Tuesday.
"We will not sacrifice the rule of law or the quality of our work to speed up the process," European Commissioner for Competition Margrethe Vestager said. Vestager blamed the delay on the "time consuming" process of gathering information, according to Bloomberg.
"But we will do our best. It is among our top priorities. Of course fast is always better than slow. But best of all is to be just," she added.
The Commission believes that Apple's 1991 and 2007 tax accords with Ireland, which afford the company a reduced effective tax rate, amount to illegal state aid designed to skirt market forces. Both Apple and the government of Ireland deny that charge, and Ireland has vowed to fight any judgement otherwise.
All the same, Apple has begun preparing shareholders for the possibility of an adverse outcome, saying that it may be forced to pay back taxes which could have a material impact on its balance sheet.
"If the European Commission were to conclude against Ireland, it could require Ireland to recover from the company past taxes covering a period of up to 10 years reflective of the disallowed state aid, and such amount could be material," the company wrote in its latest quarterly report.
In addition to Apple, the Commission is also investigating similar arrangements between Amazon and Luxembourg as well as Starbucks and the Netherlands.
Malcolm Owen
William Gallagher
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117 Comments
I don't see how Apple did anything wrong here? Apple followed the laws of Ireland. They give the Tax break to Apple and others to bring business to their country. This being some type of EU thing, it's on Ireland. They should pay and shouldn't be able to collect anything from Apple. Moving forward, Apple would have to pay more since the rules have changed, but not before.
I don't see how Apple did anything wrong here? Apple followed the laws of Ireland. They give the Tax break to Apple and others to bring business to their country. This being some type of EU thing, it's on Ireland. They should pay and shouldn't be able to collect anything from Apple. Moving forward, Apple would have to pay more since the rules have changed, but not before.
Well that’s not how it works.
[quote name="JBDragon" url="/t/186123/eu-delays-judgement-on-apples-irish-tax-deal-as-discovery-proves-time-consuming#post_2719730"]I don't see how Apple did anything wrong here? Apple followed the laws of Ireland. They give the Tax break to Apple and others to bring business to their country. This being some type of EU thing, it's on Ireland. They should pay and shouldn't be able to collect anything from Apple. Moving forward, Apple would have to pay more since the rules have changed, but not before.[/quote] Agreed. Incentives are created to attract companies, so when it works you shouldn't turn around and try to argue the company did wrong by simply by being 'incentivised' beyond anyone's wildest dreams. I would not be shocked if the EU try to retrospectively go after Apple though, legal in our view or not.
Apple is obligated to do this under securities regulations when it may have a “material impact.” It’s the law. You make it sound like they’re doing this voluntarily because they are nice.
[quote name="JBDragon" url="/t/186123/eu-delays-judgement-on-apples-irish-tax-deal-as-discovery-proves-time-consuming#post_2719730"]I don't see how Apple did anything wrong here? Apple followed the laws of Ireland. They give the Tax break to Apple and others to bring business to their country. This being some type of EU thing, it's on Ireland. They should pay and shouldn't be able to collect anything from Apple. Moving forward, Apple would have to pay more since the rules have changed, but not before.[/quote] Keep in mind the deal with Apple and Ireland predated the EU existence, and now they want to come in and say something was illegal. Grant it they may have more success for Amazon and Google than Apple because they deal actually goes back to the 80's and Ireland has always given Apple special treatment to keep jobs in Ireland verse sending them elsewhere.