Apple won’t have to pay additional taxes to the city of Cupertino based on the company’s number of local employees, city officials have decided.
Some Cupertino City Council members planned to give voters the opportunity to decide whether Apple, and other large local businesses, should pay a “head tax.” Apple would have paid around $9.4 million annually to the city. However, those plans have now been scrapped.
Apple has turned down the invitation to publicly testify before the European Parliament’s special committee on tax evasion. According to the company, the reason is that it doesn’t want to risk doing anything which could harm its ongoing appeal against the massive EU tax bill it faces.
In a letter to the EU committee published today, Apple said that, “It is important to ensure public commentary does not prejudice those proceedings.”
Cupertino could introduce a tax that would charge Apple an additional fee based on its number of employees. The city has hired a firm to poll residents asking their thoughts on such a tax, and how it should be spent.
At present, Apple has upwards of 25,000 employees in the Bay Area, although it’s not clear how many of these are specifically based in Cupertino. Apple is Cupertino’s largest employer, and has been for many years.
Apple has transferred the first 1.5 billion euro ($1.18 billion) installment of its $16 billion fine ordered by the European Union, reflecting back taxes the company supposedly hasn’t paid.
The payment was confirmed today by Ireland’s Finance Minister Paschal Donohoe. In response to Apple paying up, EU authorities are reportedly open to dropping a lawsuit against Ireland for failing to do more to chase Apple’s debt.
Apple CEO Tim Cook was reportedly “most helpful” during his White House meeting with President Donald Trump earlier this week. Cook was enthusiastic about the Trump administration’s recent tax cuts, and also had some advice about business dealings in China.
“I really enjoyed the meeting,” Larry Kudlow, director of the National Economic Council, told CNBC’s Squawk on the Street. “I spent a good amount of time with [Cook], and then we came back and we visited the POTUS.”
The iPhone and other major tech products are safe from Trump’s brewing trade war with China.
On Tuesday, the office of the U.S. Trade Representative revealed that it was slapping 25 percent tariffs on 1,300 products coming from China related to technology, transport and medical products. iPhone components were exempt from the list, but other products like magnetic hard drives and flat-panel television sets were hit hard.
Apple is among the tech giants which could be affected by a new European Union initiative that aims to tax tech multinationals at between 2 to 6 percent of their global revenue.
News of the massive potential tax shift was shared by French Finance Minister Bruno Le Maire in a newspaper interview. Le Maire said that the total amount is likely to be “closer to 2 percent than 6 percent,” and will be announced in the coming weeks.