Ireland: Nation and Apple appealing tax bill

Apple Inc. and Ireland are preparing an appeal to argue that European Union competition investigators unfairly kept them in the dark during a probe that ended in a record $14.6 billion tax bill, people with knowledge of their case say.

As they weigh their court challenges, the pair contend that the EU neglected to flag a shift in emphasis in the investigation.

Commissioner Margrethe Vestager’s team insists there was never a change in focus during the probe and that it kept Apple and Ireland up to date with developments from the time the probe was opened in 2014 through Aug. 30 — when Ireland was ordered to claw back the proceeds of alleged sweetheart tax deals.

During the Apple case, scrutiny of the company’s tax affairs in Ireland appeared to shift from so-called transfer pricing arrangements on transactions between units which are used to calculate taxable profit.

The final decision focused on how Apple allocated almost all its European sales profits to what the EU said were “head offices” not subject to tax. Transfer pricing wasn’t mentioned in last month’s press release.
Apple says none of its units was ever exempt from tax — and that under the law they are subject to deferred U.S. tax.

Full Content: The Washington Post

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