Apple's Tim Cook meets with EU antitrust chief ahead of decision on Irish taxes

Earlier on Thursday Apple CEO Tim Cook attended a private meeting in Brussels with Margrethe Vestager, the head of the European Commission's antitrust efforts, presumably in an attempt to diminish the chances of owing billions in back taxes because of the company's Irish tax deals.

The meeting's existence was confirmed by both Apple and the Commission, Bloomberg reported. Neither party was willing to share the topic of discussion.

The Commission is however in the middle of investigating whether the Irish government extended illegal state aid to Apple in the form of tax deals. Apple is known to have exploited Irish loopholes for years to pay extremely low rates on international revenue, possibly as small as 1.8 percent. Ireland's normal corporate tax rate is 12.5 percent.

A ruling could be issued as soon as March, but the investigation is already on a delayed schedule and information gathering is still said to be ongoing.

The matter also has high stakes, as Apple could theoretically owe over $8 billion, and Irish political parties are split on the matter. While Prime Minister Enda Kenny has vigorously denied that Ireland is a tax haven, and promised to fight any EU ruling against the country, the opposition Sinn Fein party has said it would be willing to pursue money owed by Apple.

EU aid rulings have already been issued against companies like Fiat and Starbucks and countries like Belgium, Luxembourg, and the Netherlands, which may not bode well for Apple and Ireland.

81 Comments

jmgregory1 474 comments · 15 Years

About 8 years ago

Just like the BS spouted by US politicians, the European's want to talk about changing the rules of the game after the fact, because they would now like a piece of Apple's pie. If you set up the rules to provide tax benefits to entice businesses to your country, you have no right to come back after the fact with outstretched hand, looking for "your" money. Sure, you can talk about changing the rules going forward, but you can't go back in time.

gwydion 1083 comments · 16 Years

jmgregory1 said:

Just like the BS spouted by US politicians, the European's want to talk about changing the rules of the game after the fact,

Then you'll be glad to know that this is not what this case is about

jmgregory1 said:

If you set up the rules to provide tax benefits to entice businesses to your country, you have no right to come back after the fact with outstretched hand, looking for "your" money.

Then you'll be glad to know that this is not what this case is aboutThis case is about allegedly ilegal state aids to some companies in Ireland, not about taxation in the EU

mr. h 4557 comments · 22 Years

jmgregory1 said:

changing the rules of the game after the fact

No, this is not about "changing the rules”. It is about applying the rules as they always have been. Ireland may have reached a deal with Apple that was in actual fact illegal, i.e. against the rules, as the rules always have been. No rules have changed. The EU is just trying to apply the existing rules.

Now, on a separate note - AI, will you please stop using “revenue” when you mean “profit”. These two things are not the same. Companies pay tax on profits, not revenue.

icoco3 1474 comments · 13 Years

Sinn Fein, the political arm of the terrorist group IRA. Glad they are on the job. /s

teejay2012 406 comments · 12 Years

gwydion said:

This case is about allegedly ilegal state aids to some companies in Ireland, not about taxation in the EU

This does not seem very straightforward. Apple recently settled a tax dispute with Italy which has been interpreted by some that monies owed to Italy for Apple business there, had been paid earlier to Ireland. ie. Apple overpaid in Ireland for the taxes that ended up being paid in Italy. I can understand that the EU would want tax policies to be consistent across its member countries, but I think this has a chance to unravel and become very messy.