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   Apple Slapped with '¬13 Billion Tax Bill, Cook Promises Appeal

   Josh Centers

   In '[1]Apple Grilled Over Tax Practices' (24 May 2013), we reported on
   the controversy surrounding Apple's practice of using Irish loopholes
   to minimize its tax bill. Now, it appears that those chickens have come
   home to roost, as the [2]European Commission has concluded that Ireland
   illegally gave Apple up to '¬13 billion (roughly $14.5 billion) in tax
   benefits that it must now recover.

   Obviously, Apple CEO Tim Cook is none too pleased with the ruling. In
   an [3]open letter to the commission, he said:

     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. The opinion issued on
     August 30th alleges that Ireland gave Apple a special deal on our
     taxes. This claim has no basis in fact or in law. We never asked
     for, nor did we receive, any special deals. 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.

   In the letter, Cook cited Apple's long-lasting commitment to Ireland,
   dating back to 1980, and the many people it employees there. 'Beyond
   the obvious targeting of Apple, the most profound and harmful effect of
   this ruling will be on investment and job creation in Europe,' he said.

   Apple and Ireland both plan to appeal the ruling. 'We are confident
   that the Commission's order will be reversed,' Cook wrote.

   The news might make tax repatriation a topic of discussion in the U.S.
   presidential race. The two major party candidates have [4]differing
   views on bringing that money to the United States: Republican candidate
   Donald Trump has proposed a drastically lower corporate tax, which
   would theoretically discourage off-shoring of profits, while Democratic
   candidate Hillary Clinton has proposed a series of measures to
   discourage companies from offshoring profits in the first place.

References

   1. https://tidbits.com/article/13792
   2. http://europa.eu/rapid/press-release_IP-16-2923_en.htm
   3. http://www.apple.com/ie/customer-letter/
   4. http://www.nytimes.com/2016/08/13/upshot/how-hillary-clinton-and-donald-trump-differ-on-taxes.html

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