Apple FAQ responds to investor queries about $14.5B EU tax edict
Apple has posted a series of answers to questions about the European Commission's tax ruling, and appears to be unconcerned about any potential financial fallout.
As a result of the $14.5 billion ruling doled out by the E.U. regulatory agency, Apple notes in its posting that it not expecting any impact on its financial results, or will need to alter previous results. Apple also claims that it will not see any impact on its tax rate in the future.
Apple also notes that U.S. taxes related to the income in question have already been accrued.
The E.U. tax penalty is not expected to alter Apple's cash balance for the foreseeable future. It will deposit "some amount of cash" in an escrow account to hold for the ruling, but expects that it will be listed as "restricted cash" in quarterly earnings reports.
Both Ireland and Apple have announced intentions to file an appeal against the commission's ruling. While saying that it wants a speedy resolution to the matter, Apple expects that the appeal process will take several years.
On Tuesday, the European Commission handed down a record tax penalty, ordering Apple to pay 13 billion euros ($14.5 billion) to Ireland in back taxes, offset if other E.U. countries seek part of the pay-out. In its investigation, the regulatory group claimed that tax rates on European profits were illegally low at 0.005 percent in 2014, and 1 percent in 2003.
"The European Commission has launched an effort to rewrite Apple's history in Europe, ignore Ireland's tax laws and upend the international tax system in the process," Apple said in a statement about the ruling made early Tuesday. "The Commission's case is not about how much Apple pays in taxes, it's about which government collects the money. It will have a profound and harmful effect on investment and job creation in Europe."