We posted a report late yesterday titled "Apple to Attend the European Parliament's Tax Committee Hearing this Wednesday." The hearing, organized by the European Parliament's tax committee, follows a similar event in November last year when Anheuser-Busch, Google and eight other companies were quizzed on the same subject. While the committee has no power to order changes, the hearing reflects the political concerns over multinationals avoiding local tax liabilities. Today BloombergBusiness reports that Apple told the panel of EU lawmakers that it pays all taxes due in the nation and doesn't get an unfair advantage compared to other companies there.
Cathy Kearney, Apple's vice-president of European operations in Cork, Ireland, said the company isn't getting unfair state aid but will remain "committed to Ireland" whatever the outcome of the EU case.
Kearny further stated during the hearing "We feel that we've paid every cent of tax that is due in Ireland. We don't feel that there has been state aid involved and I suppose we look forward to that outcome happening at the end of the day and being vindicated in that way. I would say that the Irish government also agrees with that view."
BloombergBusiness notes that "While the EU's Competition Commissioner Margrethe Vestager refuses to be drawn into speculation, analysts say that in the Apple case, repayments could potentially dwarf" the amounts that any company has been charged with thus far. More than likely Vestager feels that Apple has been using a tax loophole that they created called the Double Irish; A loophole that the EU Commission is going to close.