Global Tax 50 2014: Apple

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Global Tax 50 2014: Apple

Multinational corporation

 Apple

Apple is a new entry this year, CEO Tim Cook was also in the Global Tax 50 2013.

The technology company has come in for some intense scrutiny of its tax affairs in various parts of the world over the past few years. The company's chief executive officer, Tim Cook, earned himself a place on the Global Tax 50 2013 for advancing the US tax reform debate by staunchly defending the legitimacy of Apple's tax practices in front of the US Senate Permanent Subcommittee on Investigations. During that May 2013 hearing, Cook declared that Apple pays "all the taxes we owe, every single dollar" and added that the company not only complies with the law but also with the spirit of the law. His defence was so convincing that some senators even pitched in to throw their support behind Apple.

"I am offended by the tone and tenor of this hearing," said Senator Rand Paul. "I am offended by a $4 trillion government bullying, berating and badgering one of America's greatest success stories."

"If anyone should be on trial here it should be Congress [for creating such a complex tax code]," added the Republican.

But the "bullying, berating and badgering" did not stop there.

In June of this year, the European Commission opened formal state aid investigations into tax arrangements agreed with certain multinational companies by certain EU member states. The tax deals being looked at, of course, included rulings agreed between Ireland and Apple in 1991 and 2007.

The EC has released a preliminary view which states that "the tax rulings of 1990 (effectively agreed in 1991) and of 2007 in favour of the Apple Group constitute state aid". This is an opening decision and does not constitute a formal decision that state aid rules have been breached.

A key aspect of the investigation into the Irish tax deals is the length of the advance agreements made with Apple. The 1991 agreement lasted 16 years, which the EU says is much longer than the five year agreement typically entered into by European states.

A formal decision could take some time. However, Margrethe Vestager, the new European commissioner for competition and antitrust, and Global Tax 50 2014 member, has promised not to tolerate state-subsidised tax avoidance. She says she will "send a signal" by quickly resolving the investigations into national deals struck with Apple, Fiat Finance & Trade, Starbucks and Amazon, describing this as a "high priority". The involvement of Apple will ensure that, whatever outcome is reached, headlines will be made, and multinationals, funds and other taxpayers will be watching keenly to gauge whether they are likely to receive similar scrutiny in 2015 and beyond.

The fact Apple is such a globally recognised brand counts against it in the context of these investigations. Any political win on the tax fairness front is easier to peddle if the company is highly visible in the public eye. This helps to explain why the company's operations in Australia are being investigated on top of the scrutiny being applied in Europe and the US. All of this means 2015 is certain to be another busy year for Apple as it seeks to detach its brand from the tax avoidance label that authorities around the world are trying to pin on it.

The Global Tax 50 2014

View the full list and introduction

Gold tier (ranked in order of influence)

1. Jean-Claude Juncker  2. Pascal Saint-Amans  3. Donato Raponi  4. ICIJ  5. Jacob Lew  6. George Osborne  7. Jun Wang  8. Inverting pharmaceuticals  9. Rished Bade  10. Will Morris


Silver tier (in alphabetic order)

Joaquín AlmuniaAppleJustice Patrick BoyleCTPAJoe HockeyIMFArun JaitleyMarius KohlTizhong LiaoKosie LouwPierre MoscoviciMichael NoonanWolfgang SchäubleAlgirdas ŠemetaRobert Stack


Bronze tier (in alphabetic order)

Shinzo AbeAlberto ArenasPiet BattiauMonica BhatiaBitcoinBonoWarren BuffettECJ TranslatorsEurodadHungarian protestorsIndian Special Investigation Team (SIT)Chris JordanArmando Lara YaffarMcKessonPatrick OdierOECD printing facilitiesPier Carlo PadoanMariano RajoyNajib RazakAlex SalmondSkandiaTax Justice NetworkEdward TroupMargrethe VestagerHeinz Zourek

more across site & shared bottom lb ros

More from across our site

Firms are spending serious money to expand their tax advisory practices internationally – this proves that the tax practice is no mere sideshow
The controversial deal would ‘preserve the gains achieved under pillar two’, the OECD said; in other news, HMRC outlined its approach to dealing with ‘harmful’ tax advisers
Former EY and Deloitte tax specialists will staff the new operation, which provides the firm with new offices in Tokyo and Osaka
TP is a growing priority for West and Central African tax authorities, writes Winnie Maliko, but enforcement remains inconsistent, and data limitations persist
The UK tax agency has appointed six independent industry specialists to the panel
The two tax partners have significant experience and expertise in transactional and tax structuring matters
Katie Leah’s arrival marks a significant step in Skadden’s ambition to build a specialised, 10-partner London tax team by 2030, the firm’s European tax head tells ITR
Increasingly, clients are looking for different advisers to the established players, Ryan’s president for European and Asia Pacific operations tells ITR
Using tax to enhance its standing as a funds location is behind Luxembourg’s measures aimed at clarifying ATAD 2 and making its carried interest regime more attractive
Encompassing everything from international scandals to seismic political events, it’s a privilege to cover the intriguing world of tax
Gift this article