A Message to the Apple Community in Europe By CEO

Thirty-six years in the past, long earlier than introducing iPhone, iPod or even the mac, steve jobs hooked up apple’s first operations in Europe. On the time, the organisation knew that so one can serve customers in Europe, it might want a base there. So, in October 1980, apple opened a manufacturing unit in cork, eire with 60 employees.

At the time, cork becomes tormented by excessive unemployment and extraordinarily low financial funding. But apple’s leaders saw a network rich with skills, and one they believed could accommodate growth if the organisation became fortunate enough to be successful.

We’ve operated constantly in cork ever due to the fact that, even through intervals of uncertainty about our very own commercial enterprise, and these days we hire almost 6,000 humans throughout Ireland. The great majority are nevertheless in cork — along with some of the first actual employees — now appearing a huge sort of functions as a part of apple’s worldwide footprint. Endless multinational businesses observed apple by means of investing in cork, and these days the nearby financial system is stronger than ever.

The fulfillment which has propelled apple’s growth in cork comes from modern merchandise that delight our clients. It has helped create and maintain extra than 1.5 million jobs across europe — jobs at apple, jobs for masses of heaps of creative app builders who thrive on the app shop, and jobs with manufacturers and other suppliers. Endless small and medium-length corporations rely on apple, and we’re proud to help them.

As responsible corporate citizens, we are also proud of our contributions to nearby economies throughout Europe, and to communities anywhere. As our commercial enterprise has grown over the years, we’ve become the biggest taxpayer in Ireland, the largest taxpayer in the America, and the most important taxpayer inside the international.

Over the years, we received guidance from Irish tax authorities on how to comply effectively with Irish tax regulation — the same form of guidance to be had to any organization doing business there. In Ireland and in every u . S . In which we perform, apple follows the regulation and we pay all the taxes we owe.

The EU commission has released an attempt to rewrite apple’s records in Europe, forget about eire’s tax laws and upend the global tax machine in the manner. The opinion issued on august thirtieth alleges that eire gave apple a special deal on our taxes. This claim has no foundation in fact or in law. We by no means asked for, nor did we acquire any special deals. We now find ourselves in the uncommon position of being ordered to retroactively pay extra taxes to a central authority that says we don’t owe them any extra than we have already paid.

The fee’s flow is unparalleled and it has critical wide-achieving implications. It’s miles successfully providing for updating Irish tax laws with a view of what the fee thinks the law should be. This would strike a devastating blow to the sovereignty of EU member states over their own tax subjects, and to the precept of a fact of law in Europe. Ireland has stated they plan to appeal the commission’s ruling and apple will do the same. We’re confident that the fee’s order will be reversed.

At its root, the commission’s case isn’t always about how tons apple pays in taxes. It’s miles about which government collects the money.

Taxes for multinational businesses are complicated, but an essential principle is diagnosed around the sector: a corporation’s income must be taxed within us of a wherein the price is created. Apple, Ireland, and the united states all agree in this precept.

In apple’s case, nearly all of our research and improvement takes location in California, so the enormous majority of our earnings are taxed inside the u.S.A. Ecu companies doing commercial enterprise in the u.S. Are taxed in step with the same principle. But the fee is now calling to retroactively change those rules.

Beyond the obvious focused on of apple, the most profound and dangerous effect of this ruling could be on investment and activity introduction in Europe. The use of the commission’s concept, every business enterprise in Ireland and throughout Europe is abruptly liable to be subjected to taxes below legal guidelines that in no way existed.

Apple has long supported global tax reform with the objectives of simplicity and clarity. We trust those adjustments must come approximately thru the proper legislative method, wherein proposals are discussed among the leaders and citizens of the affected nations. And as with every new law, they must be implemented going ahead — not retroactively.

We are devoted to Ireland and we plan to preserve making an investment there, growing and serving our clients with the identical level of ardour and commitment. We firmly accept as true with that the statistics and the setup prison principles upon which the ECU turned into funded will ultimately be triumphant.

-Tim Cook


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