Apple May Send Cash Back to USA Thanks to EU Commission
armstrongeconomics.com / by Martin Armstrong / Sep 2, 2016
Tim Cook, the head of Apple, said that the company may send billions of dollars back to the US next year in 2017 in response to the EU Commission retroactively changing tax deals. Apple struck a deal with Ireland and agreed to locate there for taxes. Now the EU Commission is saying individual member states may not undercut anyone else on taxes to gain jobs for their own population. Apple entered into the agreement and paid the taxes to Ireland. Now the EU Commission says Apple must pay almost $15 billion more in taxes because Ireland undercut other members. Bureaucrats do not understand human nature and assume that people must obey and cannot see that this may destroy their own economy. The EU Commission cannot see reality. What they have done with Apple is set in motion a race to now exit Europe.
Cook made the comments in an interview with Irish media expressing the blunt fact that Apple may now simply repatriate cash back to the USA. He did not specifically say how much cash Apple might take home from foreign countries. Nevertheless, Cook’s comments are a direct response to the arbitrary position of the European Commission demanding Apple needs to pay Ireland $14.5 billion in additional tax penalties because the deal was less that they would have charged. Cook has publicly stated that this EU demand was “total political crap.”