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"The Irish government has done absolutely nothing wrong" - Tim Cook

The Apple CEO has come out swinging since yesterday’s decision by the EC to bill his company €13 billion for unpaid Irish taxes.

Italy Cook Tim Cook Luca Bruno Luca Bruno

APPLE CEO TIM Cook has hit back at the criticism aimed at his company and the tax it paid (or didn’t pay) within Ireland over the last 25 years, and says the European Commission’s bill of €13 billion for his company “comes from a political place”.

In an interview with RTÉ’s Morning Ireland, Cook claimed that Apple’s worldwide tax rate in 2014 was 21.6%, as opposed to the 0.005% the European Commission claims it paid on its European profits that year.

“It’s maddening, it’s disappointing, it comes from a political place, it has no basis in fact or law,” Cook said of the decision.

Unfortunately it’s one of those things you have to work through.

Cook claimed that the “numbers being thrown around” regarding Apple’s tax bill are “a lot of misinformation, a lot of false information”.

“We pay the Irish corporate tax rate of 12.5%, we paid $400 million tax in Ireland in 2014,” he said.

I believe we’re the largest taxpayer there, we want to be a great citizen in the Irish community we’re working in.

“In 2014 our worldwide income tax rate was 21.6%,” Cook said. “I can recognise that people might hear that figure and think it should be higher, others might think it should be lower, others might think that it’s about right but should be paid to different countries, or allocated better.”

I think all discussions are fair discussions, and all reasonable people could agree or disagree, but that should be about future not retroactive taxes.

When asked if Apple had been given a special deal by the Irish government, or had ever been given a so-called sweetheart deal, Cook replied “no” definitively to both questions.

Regarding the tax rate of 0.005% that Europe’s competition commissioner Margrethe Vestager claims Apple pays, Cook said: “It’s a false number, I have no idea where it comes from.”

“We paid $400 million in Ireland in 2014, another $400 million in the US, and many other taxes in other countries where we made a profit,” he said.

Cook also said that Apple has provisioned “several billion dollars” for payment of US taxes once the company’s profits are repatriated back to its parent country.

He suggested that this process will happen next year.

“A romance”

He said Apple is “very committed to Ireland”. “We’ve been in a romance together now for 37 years, we’re confident the government will do the right thing and appeal this decision.”

We haven’t done anything wrong, and the Irish government hasn’t done anything wrong, we’ve built a great relationship together.
Apple has always been about doing the right thing.

Cook said that Apple themselves will be appealing the decision and further added that the company’s confidence in Ireland “hasn’t been diminished one iota”.

“We’re not going to let an invalid ruling alter our deep commitment to Ireland,” he said.

Apple Williamsburg Mark Lennihan Mark Lennihan

He described the European Commission’s “overreach” in the situation as “unbelievable to us”. He said the decision was “maddening”  and “not based on law or fact”, but that he was confident it would be overturned on appeal.

“It’s like playing a sports game and winning the championship and then finding out the goals are worth less than you thought they were,” he said.

The situation has created an enormous headache for the government as it seeks to justify appealing the EC’s decision – in effect refusing the €13 billion windfall.

Yesterday, a five-hour cabinet meeting finished with the issue adjourned until Friday. Meanwhile, yesterday evening it emerged that Taoiseach Enda Kenny had spoken to Cook prior to the bombshell announcement by the EC.

Speaking also on RTÉ this morning, Green Party leader Eamon Ryan said that “legal or illegal”, the deal Apple had been given by Ireland was “wrong”.

“A stateless company paying no taxes, I don’t believe that was fair,” he said.

That was not proper tax justice.

European reaction

Speaking at a news conference in Brussels today, European Competition Commissioner Margrethe Vestager disagreed with Cook’s assertions.

“This is a decision based on the facts of the case – looking into Apple Sales International, how they were arranged within Ireland, and the profits recorded there.

“The enforcement part of the competition portfolio does not really fit into any political picture.

“It fits into the EU treaty. We take independent decisions which are fact based.”

Read: Taoiseach spoke to Apple CEO before bombshell tax announcement

Read: Appeal for 59-year-old missing since visiting Donegal

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179 Comments
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    Mute UndieGrundy
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    Jul 28th 2016, 6:46 PM

    Another councillor repeating rumour as if fact. Who would have thought it?

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    Mute Alan b
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    Jul 28th 2016, 6:56 PM

    Just aswell if he thought there was hillbillies in America he’d come across some rare ones in cork

    48
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    Mute China Photo Daily
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    Jul 28th 2016, 8:08 PM

    The Hillbillies in Cork at least do a good breast in a bun

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    Mute Alan b
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    Jul 28th 2016, 10:30 PM

    Is there more bun than breast?

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    Mute windbag
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    Jul 28th 2016, 11:27 PM

    Hahahaha…… This story has so many levels…

    4
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    Mute GameOverMan
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    Jul 28th 2016, 11:48 PM

    Noooooooooòooooooooòòooooooooooo!!! Not this clown again.

    25
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    Mute Jason O Shea
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    Jul 28th 2016, 6:59 PM

    After the debacle of the Bruce Springsteen gig at pairc ui Chaoimh a few years ago I would be surprised if the Gardai would allow another gig their. Stewards gone by ten. Toilets shut. 35000 people converging on a small gated exit in the dark to find the gate locked. Cops had to get an angle grinder to cut it open. And never mind the lining up twice for a drink . You wouldnt believe it unless you were there.

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    Mute Lisa O'Connor
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    Jul 28th 2016, 7:04 PM

    Lock me in with Garth, yes please

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    Mute Jason O Shea
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    Jul 28th 2016, 7:06 PM
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    Mute dgaffer63
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    Jul 28th 2016, 7:40 PM

    Well said Jason couldn’t agree more it was shambolic.

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    Mute Seamus Corcoran
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    Jul 28th 2016, 8:13 PM

    It’s being rebuilt presently. Should sort out most of the issues from the Springsteen gig.

    32
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    Mute J-Man
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    Jul 28th 2016, 8:17 PM

    I guess you’re not aware that The Pairc is actually being completely rebuilt from the ground up. Many of those issues will be resolved with the new stadium.

    19
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    Mute Ger Buckley
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    Jul 28th 2016, 10:13 PM

    Time for your next tablet Lisa

    17
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    Mute Niamhs
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    Jul 28th 2016, 7:13 PM

    Will he just go away for goodness sake…

    79
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    Mute Qwerty
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    Jul 28th 2016, 7:51 PM

    Garth Brooks, Pat Kenny and Ibrahim Halawa will all be joining up and singing together in Croke Park. It will all be in aid of raising awareness of LGBT issues and repealing the 8th amendment.

    The Journal will be there with live coverage throughout the event.

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    Mute Screaming Toddy
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    Jul 28th 2016, 6:51 PM

    I hope he means it.

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    Mute Tony English
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    Jul 28th 2016, 6:49 PM

    Quick somebody ring the Mexican ambassador

    46
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    Mute Red hurley
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    Jul 28th 2016, 7:09 PM

    Really?i heard he was doing 50 nights in vicar Street.

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    Mute Dave Murray
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    Jul 28th 2016, 7:58 PM

    I heard 500…

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    Mute Tony Skillington
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    Jul 28th 2016, 7:00 PM

    Anything to be said for having a mass..?

    42
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    Mute prop joe
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    Jul 28th 2016, 7:31 PM

    Can’t he take a hint. I never realised so many people had bad taste in music.

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    Mute UM
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    Jul 28th 2016, 8:10 PM

    A case of wishful thinking by the Lord Mayor and an attempt at some much needed publicity for him. I live in cork and never heard of this particular Lord Mayor. Idiot!

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    Mute GQ
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    Jul 28th 2016, 6:59 PM

    Thank God

    24
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    Mute Kerry Blake
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    Jul 28th 2016, 7:47 PM

    Does anyone care?

    23
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    Mute niall
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    Jul 28th 2016, 8:38 PM

    Good, fook off

    18
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    Mute Shay McDonough
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    Jul 28th 2016, 11:04 PM

    Love his music, but will never go and see him live again after his arrogance over Coke Park and all that that entailed

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    Mute Paddy Moretti
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    Jul 28th 2016, 8:42 PM

    I’d pay to see him play Cork…either hurling or football I don’t mind.

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    Mute Paddy Murray
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    Jul 28th 2016, 8:46 PM

    Cant blame him for not coming after the shite he had to listen to the last time. He would have brought tourist to our city and yet by only a hand full of people the concerts did not go ahead. Pity as events like these do help our ecconomy thrive.

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    Mute Screaming Toddy
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    Jul 28th 2016, 9:59 PM

    Bollocks. He cancelled 3 shows. Nobody else.

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    Mute Stevey Walker
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    Jul 28th 2016, 8:24 PM

    Shame. I was so looking forward to another season of drama involving middle women and their daughters.

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    Mute Turk Oneeighttwo
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    Jul 28th 2016, 8:12 PM

    Thought he was doing 4 nights in a row at Croker!

    9
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    Mute Jimmy Boots
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    Jul 29th 2016, 2:26 AM

    Why is this non entity news worthy? His music is embarrassing…is Ireland the only place willing to host him?

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    Mute susan o'flaherty
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    Jul 28th 2016, 10:14 PM

    good. don’t mind his music but after the croagh park debacle don’t want another repeat of the same thing

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    Mute Jimmy Murphy
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    Jul 28th 2016, 8:45 PM

    So much talk about gigs not happening. Shudder the thought a concert might actually take place.

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    Mute noel smullen
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    Jul 28th 2016, 11:07 PM

    Thank God for unanswered prayers!

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    Mute Des Doran
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    Jul 28th 2016, 10:17 PM

    Thank God for that.

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    Mute Tomás O'Loughlin
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    Jul 29th 2016, 12:02 AM

    And i’d no plans to see him. Where’s my article?

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    Mute Carm(Little Vampire)
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    Jul 29th 2016, 12:43 AM

    What has mentioning that Adele played the 3 arena in March got to do with the price of fish? Time to get over the auld obsession with Brooks at this stage.

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    Mute Paul Roche
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    Jul 29th 2016, 11:26 AM

    Go away you hick

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    Mute Gavin Gray
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    Jul 29th 2016, 9:40 PM

    Tell Garth Brooks to suck an egg

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