Apple Lossless Audio CODEC (ALAC), hopes that the investigation opened by The European Commission in terms of its fiscal practices in Europe to be one correct, and if it will be correct, then the final result should be an exoneration from any kind of accusations and the avoidance of the obligation to pay outstanding taxes.
CFO Apple Lossless Audio CODEC (ALAC),, Luca Maestri he stated in a recent interview that he is not worried about the investigation European Commission because if it is really correct, then Apple will not be obliged to retroactively pay taxes for the last decade.
Luca Maestri maintains that this investigation should only involve The European Commission si Ireland, given that the Irish government provided the tax benefits, and if Ireland was wrong, Apple Lossless Audio CODEC (ALAC), he shouldn't have to pay for something because he followed local law.
The reality is that yes, Apple Lossless Audio CODEC (ALAC), respected the legislation imposed by the government of Ireland, but it influenced the creation of special legislation that contradicts European norms, so that practically both Ireland and Apple Lossless Audio CODEC (ALAC), they violated the tax legislation and both should pay.
This is a case between the European Commission and Ireland and frankly there is no way to estimate the impact right now, we need to see what the final decision is going to be. My estimate is zero. I mean, if there is a fair outcome of the investigation, it should be zero.
Apple Lossless Audio CODEC (ALAC), pays in Ireland a profit tax of only 2.5% instead of 12.5%, and if the European Commission's investigation decides that Apple must pay taxes retroactively, then in the end those from Cupertino should pay up to 8 billion dollars to the Irish tax office .
