Apple Inc Chief Executive Officer Tim Cook on Thursday said that the company will shift billions of dollars in profits to the United States next year for the purposes of paying its deferred taxes, The Guardian reported. Cook said that Apple had “provisioned” the money for the US and that it was a “materially larger” number than the $400 million (approximately Rs 2,677 crore) paid to both Ireland and the US in 2014.
Cook said the European’s Commission’s ruling against Apple on its taxes in Ireland was political and unfair, according to the report, which quoted from an interview he gave to a radio network. He also went on to challenge figures presented by European Commissioner for Competition Margrethe Vestager, saying that the California-based company had paid “a worldwide income tax rate of 26.1%” in 2014. He added that Apple was “very confident” of overturning the commission’s ruling asking it to pay €13 billion (approximately Rs 97,000 crore) plus interest in an appeal.
The CEO’s comments came two days after the Commission made its ruling and said that Apple had illegally gained from a “selective tax treatment” in Ireland. It also said that Dublin’s favourable tax policy gave the group a “significant advantage over other businesses” and that Apple had paid an effective corporate tax rate of only 0.005% in 2014. The penalty is the Competition Commission’s biggest decision in a three-year-long campaign against tax favouritism in the European Union.