Apple CFO Luca Maestri to Lead Challenge Against Irish Tax Ruling in Luxembourg Court This Week

Apple this week is set to challenge the European Commission's order to repay 13 billion euros in Irish back taxes, according to Reuters.

European Commisssion
The report claims Apple is expected to send a six-person delegation led by its CFO Luca Maestri to a two-day court hearing in Luxembourg on Tuesday and Wednesday. Apple will likely argue many of the same points that Apple CEO Tim Cook penned in a public letter about the tax ruling three years ago.

In a nutshell, Apple believes it follows the law and pays all the taxes it owes in every country where it operates, including Ireland. Apple has also said nearly all of its research and development takes place in the United States, so that is where the company should and does pay the majority of its taxes.

An excerpt from Cook's letter:

The Commission's move is unprecedented and it has serious, wide-reaching implications. It is effectively proposing to replace Irish tax laws with a view of what the Commission thinks the law should have been. This would strike a devastating blow to the sovereignty of EU member states over their own tax matters, and to the principle of certainty of law in Europe.

Ireland is also appealing the ruling, but Apple has finished paying back the 13 billion euros in the meantime, with the funds stored in an escrow account. If the order is overturned, the money would be returned to Apple.

In 2016, following a three-year investigation, the European Commission found Apple received illegal state aid from Ireland. Apple allegedly paid between 0.005 percent and one percent in taxes in Ireland between 2003 and 2014, compared to the the country's headline 12.5 percent corporate tax rate at the time.

Top Rated Comments

Sathinator1 Avatar
22 months ago
Apple should pay its fair share of tax in any part of the world that it operates. These tax minimization schemes are a disgrace.
Score: 30 Votes (Like | Disagree)
Nuno Lopes Avatar
22 months ago
As an European I totally agree with Apple assessment. One of the ways small European countries have to compete and attract mass scale businesses such as the ones of Apple, against big countries like Germany and France is by negotiating better tax conditions.

Considering the small dimensions and population of these countries versus the massive scale of these companies businesses they can at a lower tax, supply financially their needs lawfully.

Of course the German, the French and the soon to leave the British, don’t like this. Their view is anti competitive. They want to have the advantages of being geographically big and large populations as well as tax advantages. They have cooked the European competition laws to their advantage but the issue of sovereignty has kept them from touching local / country tax laws. If they see this through they will be able to do whatever with local tax laws, and cook them to their advantage.

This is as ridiculous as small countries advocating that it’s unfair for them to be geographically small or not as well positioned in the flux of businesses in the map.

Mind you that all the loans given to smaller countries at better rates were for their development in exchange of commercial and production quotas towards the larger countries with plenty of agricultural fields and industrial capacity. So the lunch was not at all free. The all thing culminated with the Greek incident with the German suggestion for them to sell Islands in order to pay their dept.

Cheers.
Score: 20 Votes (Like | Disagree)
tabilo Avatar
22 months ago
As a European I disagree with Apple on this. The European idea can only work if there is a fair competition. Countries like Ireland, Luxembourg and partly UK and the Netherlands are using loopholes to attract international cooperations to avoid taxes, which the rest of the EU has to pay for.
Score: 16 Votes (Like | Disagree)
apolloa Avatar
22 months ago
Good luck Apple, you’ve got absolutely no hope of winning but good luck all the same.
Personally I think you should pay your taxes like everyone else and stop milking it of society but that’s just me.
Score: 10 Votes (Like | Disagree)
az431 Avatar
22 months ago
Apple should pay its fair share of tax in any part of the world that it operates. These tax minimization schemes are a disgrace.
So you don’t take any tax deductions that you are entitled to because it would be a “disgrace”?

I thought so.
Score: 10 Votes (Like | Disagree)
lkrupp Avatar
22 months ago
Why bother, Apple. This is a done deal. You think you can talk the EU out of $15B? They’re drooling over the prospect of getting their hands on that cash.
Score: 9 Votes (Like | Disagree)

Top Stories

tracking disabled ios 14 5

Analytics Suggest 96% of Users Leave App Tracking Disabled in iOS 14.5

Friday May 7, 2021 1:51 am PDT by
An early look at an ongoing analysis of Apple's App Tracking Transparency suggests that the vast majority of iPhone users are leaving app tracking disabled since the feature went live on April 26 with the release of iOS 14.5. According to the latest data from analytics firm Flurry, just 4% of iPhone users in the U.S. have actively chosen to opt into app tracking after updating their device...
macbook colors 3d black bezels

Prosser: Next MacBook Air Could Come in Colors Similar to iMac

Friday May 7, 2021 6:55 am PDT by
According to Apple leaker Jon Prosser, Apple's upcoming release of the MacBook Air will feature various colors, similar to the colors in the newly released 24-inch iMac. In the latest video of his YouTube channel Front Page Tech, Prosser says the same source who accurately provided him information on the first Apple silicon iMac coming in colors has told him that he recently saw a prototype...
snapchat dark mode

Snapchat Rolls Out Dark Mode on iOS

Wednesday May 5, 2021 1:17 am PDT by
Nearly two years following the release of iOS and iPadOS 13, which included native, built-in, and systemwide dark mode, Snapchat, one of the world's most prominent social media networks, has finally rolled out a dark mode theme for iOS users. Snapchat began testing a dark mode theme of its app design late last year with a small group of iOS users. Now, Snapchat says that as of this week, it...
tile amazon sidewalk integration

Tile to Leverage Amazon Echo and Ring Devices to Better Compete With AirTags

Friday May 7, 2021 2:07 pm PDT by
Amazon today announced that it is teaming up with Tile to add Amazon Sidewalk integration to Tile's Bluetooth trackers. Amazon Sidewalk, for those unfamiliar, is a network of Amazon Bluetooth devices that's designed to improve the connectivity of devices like the Ring and Amazon Echo. Tile will now be joining Amazon Sidewalk, and through this integration, Amazon Echo and Ring devices will be ...
tile sticker e1570533758981

Tile CEO: 'We Welcome Competition From Apple, But We Think It Needs to Be Fair'

Tuesday May 4, 2021 9:51 am PDT by
Just after Apple announced its AirTags, Tile CEO CJ Prober relayed his concerns about competing with Apple in the tracking space, and said that Tile would ask Congress to investigate Apple's business practices specific to Find My and item trackers. Prober this week did an interview with Bloomberg, where he further expanded on Tile's complaints about Apple and why he feels that Tile is...
airtag 1

AirTag Anti-Stalking Measures 'Just Aren't Sufficient' Says Washington Post Report

Wednesday May 5, 2021 6:03 pm PDT by
The safeguards that Apple built into AirTags to prevent them from being used to track someone "just aren't sufficient," The Washington Post's Geoffrey Fowler said today in a report investigating how AirTags can be used for covert stalking. Fowler planted an AirTag on himself and teamed up with a colleague to be pretend stalked, and he came to the conclusion that the AirTags are a "new means...
signal instagram ads3

Signal Shares the Instagram Ads Facebook Doesn't Want You to See

Wednesday May 5, 2021 1:29 am PDT by
Encrypted messaging app Signal has had a series of Instagram ads blocked from the social media platform, after it attempted to show users how much data the Facebook-owned company collects about them and how it's used to push targeted ads. In a blog post, Signal described how it generated the ads to show users why they were seeing them, simply by declaring upfront the information that the...
fortnite apple logo 2

Epic CEO Tim Sweeney Admits App Store's 30% Cut Is Similar to Consoles, Would Have Accepted Special Deal With Apple

Tuesday May 4, 2021 1:54 pm PDT by
Apple's legal battle with Epic Games is continuing on, and during the second day of the trial, Epic Games' CEO Tim Sweeney continued his testimony against Apple. Sweeney was grilled by Apple's lawyers, and made several points seemingly favorable to Apple. In addition to mentioning how he prefers Apple's iPhone and values Apple's privacy policies that he's aiming to dismantle, Sweeney...
iphone 12 preorder purple

Apple Begins Transition to Randomized Serial Numbers With Purple iPhone 12

Wednesday May 5, 2021 9:17 am PDT by
MacRumors previously reported about Apple's plan to switch to randomized serial numbers for future products starting in early 2021, and this transition has now started with the new purple iPhone 12 model in multiple countries. With assistance from Aaron Zollo, host of the YouTube channel ZolloTech, we can confirm that the purple iPhone 12 released last month has a new 10-character serial...
precision finding developer mode

AirTag Precision Finding Interface Includes Hidden 'Developer Mode'

Thursday May 6, 2021 1:32 am PDT by
A frustrated AirTag owner has inadvertently discovered the existence of a hidden "developer mode" in the on-screen interface that Find My displays when the Precision Finding feature is activated to help locate one of Apple's item trackers. Precision Finding is a feature that provides users with specific on-screen directions for finding a nearby AirTag. iPhones with a U1 chip, which includes ...