Apple Posts Investor FAQ on Implications of EU Tax Demands
Following the EU Commission’s ruling instructing Apple to pay $14.5 billion to Ireland in back taxes, investors had a good reason to worry, although that amount would hardly affect Apple’s $213 billion cash pile. However, Apple has posted a series of questions and answers responding to a handful of worries investors would have.
As the FAQ file reveals, Apple expects the ruling to have neither any financial impact on its financial results for the fourth quarter nor the future. Just as in the open letter signed by CEO Tim Cook, Apple notes that both Ireland and the company will appeal against the ruling, and that they are confident it will be overturned by the courts of the European Union.
Going forward, Apple expects to deposit “some amount of cash in an escrow account”, but at this point the size of the escrow amount is unknown. However, Apple will inform investors by reporting it as “restricted cash on Apple’s balance sheet.”
Apple has already shown with previous patent litigations that it is ready to fight in the courts for years, and its perseverance also applies to this case as well.