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Apple: tempers continue to flare

Thursday, September 01, 2016 - 01:36

US Treasury Secretary Jack Lew joins the chorus of US disapproval over the EU's 13 billion euros tax demand against Apple - saying it shows a 'pattern' of targetting American companies. But as Laura Frykberg reports, Ireland is delaying a decision on whether to appeal against the demand.

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Europe may have bitten Apple first. But the U.S. is now hungry too. It wants the billions of dollars the tech company's been ordered to pay Ireland in its OWN coffers. (SOUNDBITE) (English) UNITED STATES SECRETARY OF THE TREASURY, JACK LEW SAYING: "I've been concerned that it reflects an attempt to reach into the U.S. tax base to tax incomes that ought to be taxed into the United States." That sparks little sympathy from some. (SOUNDBITE)(English) CIBC, HEAD OF FX STRATEGY, JEREMY STRETCH, SAYING: "If the U.S. authorities had dealt with their own internal tax affairs rather more aggressively and looked at perhaps making their own tax structures a little more competitive then the U.S. corporate sector wouldn't be keeping so much cash on its balance sheets offshore in order to preclude paying some penal US tax rate." The ruling's left a sour taste at Apple. CEO Tim Cook has called it, 'total political crap'. Half of Ireland's cabinet appears to agree. Fearing if Apple is forced to pay it'll move elsewhere. Others say it could be well spent. It's enough to fund the country's health service for a year. (SOUNDBITE) (English) WILSON KING INVESTMENT MANAGEMENT, HEAD OF RESEARCH, RICHARD HUNTER, SAYING: "With the obvious discord between them and the European Commission and also Apple's annoyance as well, this is something that could well be kicked back into the courts, which in terms of course could mean this could rumble on for some years to come." Analysts say more multinationals could now come under fire. But with pressure from the US mounting since Apple's bruising. Europe may look at corporates based closer to home.

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Apple: tempers continue to flare

Thursday, September 01, 2016 - 01:36