Apple Inc. (AAPL) CEO Tim Cook Counters EU Demands

After three years of investigating, the European Commission recently levied a $14.5 billion bill at the foot of Apple Inc. (NASDAQ:AAPL) for unpaid back taxes to Ireland. Tim Cook, for his part, remains steadfast in his belief that Apple has paid what it owed to Ireland and that the decision will be reversed.

Apple Inc. (AAPL) CEO Tim Cook Counters EU Demands

Source: Apple

It’s not the first time that AAPL has been accused for its “unpatriotic” dodging of taxes by keeping the majority of its massive cash hoard overseas. Tim Cook, however, does not see it as such.

According to Cook, “it’s not a matter of being patriotic or not patriotic. It doesn’t go that the more you pay, the more patriotic you are.” But when it comes to Ireland, Cook claims that Apple was not given special treatment and that its tax arrangement was purely legal.

The investigation claims that AAPL went from paying 1% on its European profits to 0.005% in 2014.

AAPL’s Response

After the European Union’s decision, Tim Cook took to the internet to pen a thoughtful open letter on the matter, describing Steve Jobs’ establishment of a factory of 60 employees in Cork, Ireland:

“We have operated continuously in Cork ever since, even through periods of uncertainty about our own business, and today we employ nearly 6,000 people across Ireland. The vast majority are still in Cork — including some of the very first employees — now performing a wide variety of functions as part of Apple’s global footprint. Countless multinational companies followed Apple by investing in Cork, and today the local economy is stronger than ever.”

AAPL, along with Ireland, has appealed the decision, which he believes has far-reaching implications:

“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.”

No matter the decision, Cook states that AAPL is “committed to Ireland” and will continue to operate “with the same level of passion and commitment.”

As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities. 

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