Apple has made a statement towards the EU that stood against the tax arrangements. Apple has told the EU that they could either have taxes or jobs. Apple is not going to give them both. This came after Apple learned that the EU is expecting 13 billion euros from Apple in back taxes. Apple’s response is that paying that kind of money is going to be very harmful to the prospects of job development in Europe. While it is not meant as a threat, it will be seen as one by the politicians in the EU. After all, they are trying to get new companies into their country.
Back in the beginning of the 90s, Apple has made a deal Ireland that it would pay some low taxes if the operations were based in Ireland for Europe. Thousands of jobs have been created in Ireland for the 25 years that it has lasted. 2015 saw a total of 5,000 employees. There were plans for up to 1,000 more jobs when they were hit with the dilemma. As of right now, there is a plan to open a new site in Athenry. This would result in as much as 200 jobs for people in the country.
When Apple has made its statement to the EU about taxes or jobs, it was in fact honoring the original agreement about low taxes and jobs. Also, the taxes actually make it harder to hire people since jobs cost money. It is definitely not a threat, it is a limitation that they see in their budget. As of right now, Apple pays the largest amount of taxes in Ireland. Therefore, it can make the negotiations needed so that it can get what it asks for. Also, these arrangements were agreed to over and over by the Irish Government. Therefore, it is only expected that they will honor the agreement. This is actually a very sound move for companies. If they are taxed, they are not as able to offer jobs.