European authorities are pressing Apple to share details about its tax arrangements, according to The Washington Post. This news comes following a report yesterday alleging that Apple had shifted its cash hoard to Jersey following skepticism about its agreement in Ireland…
Today’s report explains that the European Union is asking Apple for an update on its tax arrangements in an effort to see if everything “is in accordance with our European rules.” European Union commissioner for competition, Margrethe Vestager, specifically cited yesterday’s Paradise Papers leak as reasoning for her inquisition into Apple.
“I have been asking for an update on the arrangement made by Apple, the recent way they have been organized, in order to get the feeling whether or not this is in accordance with our European rules but that remains to be seen,” Vestager said.
“That remains to be seen if we will open more cases after the Paradise Papers,” she added.
The report yesterday alleged that Apple had chosen Jersey, a small island between England and France, as a new so-called tax haven. Apple reportedly began its search for a new home for its cash hoard back in 2014, after the European Union expressed displeasure with its arrangements in Ireland.
Apple is currently embroiled in a battle with the European Union, which ordered Ireland to collect $14.5 billion in back taxes from Apple. As Ben Lovejoy explained this morning, it’s important that Apple avoid the appearance of tax avoidance – more on that here.
For its part, Apple refuted yesterday’s report and said that “no operations or investments were moved from Ireland.” Furthermore, Apple pointed out that it is the “largest taxpayer in the world” with its corporate tax rate on foreign earnings at 21 percent, and 35 percent on income from overseas investments.
Apple has yet to respond to today’s request from the European Union commissioner.