Despite $150 Billion In The Bank, Apple Set To Fight Tax Ruling
Apple who have been in Court fighting cases for more than a decade is facing a $20 billion tax bill and a big legal case with the US Company set to go into battle with the European Union despite having over $150 Billion in cash reserves.
The cashed-up Company, who have been forced to pay more taxes in Australia will next month face a hearing set to throw the spotlight on European antitrust commissioner Margrethe Vestager’s crackdown on tax deals doled out to big companies.
The EU’s General Court, its second-highest tribunal, will hear arguments in the challenges by the iPhone maker and Ireland over two days set for Sept. 17-18.
Both Apple and Alphabet the Company that own Google have massive cash reserves. In 2017 Apple had $240 Billion in cash reserves.
As of this year’s second financial quarter, Alphabet now has US $172 billion in reserve, compared to $150 billion for Apple in 2019. Apple reduced its reserves after complaints by shareholders.
Since 2017 Apple has worked to reduce its liquidity in response to criticisms from investors that the company was hoarding cash.
While there is some room for nuance, investors generally want to discourage companies from hoarding cash claim analysts.
The European Commission in August 2016 ordered Ireland to recoup the record sum plus interest, saying the world’s richest company was handed an unfair advantage.
The EU decision reverberated across the Atlantic, triggering criticism from the U.S. Treasury that the EU was making itself a “supra-national tax authority” that could threaten global tax reform efforts.
Bloomberg claims that the Irish government said in an email it “profoundly disagrees” with the EU’s decision and “is engaging fully with the process and ensuring the best presentation of the state’s position.”
Apple didn’t immediately respond to requests for comment.