Sanjay Shah Solo Capital and Tim Cook of Apple Inc When the System is a Mess

Tim Cook is the CEO of Apple Inc and Sanjay Shah was the CEO of Solo Capital London, a hedge fund firm that ceased its operations a few years back. It is unlikely that these two men know each other and held any businesses together. However, European Union’s ‘tax probe’ into Apple’s operations and its demand that Apple pay $14billion in taxes to Ireland has more shocking similarities to Sanjay Shah’s story.

tim cook apple and sanjay shah solo capital

Image Courtesy – Apple

After the immigration crisis, Brexit and recent terror attack in Germany, it is not surprising to see why EU’s credibility is decreasing day by day and almost everything EU or its members say can’t be taken without a grain of salt. Sometimes these stories are too fishy that the grain of salt is not enough to make the stories convincing.

Apple and Sanjay Shah – The Danish Connection

Solo Capital London, the hedge fund firm operated by Sanjay Shah was in news when Danish authorities alleged that Denmark lost $900 million in a tax loophole exploited by Solo Capital while $3 billion is lost in mismanagement of funds. However, media and leftist bloggers are not very keen on interrogating the government’s claim of losing $3billion in mismanagement of funds. They are more interested in launching personal attacks against Sanjay Shah and Solo Capital for allegedly using tax loopholes to take out $900 million from the system.

Sanjay Shah philanthropist

Image Courtesy – Greg Allen Photo/Sanjay Shah

Authorities later said that the amount is $1.2 billion. That’s a difference of $220million! Funds Hero believes that a responsible system should be consistent with its claims. If the difference is a couple of thousand dollars, it is understandable. But how can the number change so rapidly and an additional $220 million dollar added to the claims? What if the Danish government come forward and tell us tomorrow that ‘In fact Sanjay Shah’s Solo Capital exploited the system and took away $3 billion dollars while $1billion is lost to mismanagement’?

The story can change again and I won’t be surprised if Denmark’s politicians claim almost the entire $4 billion was lost to Sanjay Shah while mismanagement accounted to a paltry $10 million – a mistake people will quietly overlook. Governments losing a couple of millions each year is thought to be a part of the game.

EU allege that Apple is not paying a fair amount of tax to the Irish government for many years. Their statement said;

“The commission said the deal allowed Apple to pay a maximum tax rate of just 1%. In 2014, the tech firm paid tax at just 0.005%. The usual rate of corporation tax in Ireland is 12.5%”.

 You can read the full story hereStory.

 The Guardian article also says Apple’s CEO Tim Cook was angry about the ruling and responded:

“We never asked for, nor did we receive, any special deals. We now find ourselves in the unusual position of being ordered to retroactively pay additional taxes to a government that says we don’t owe them any more than we’ve already paid.”

Surprisingly, Ireland ministry also gave cold shoulders to Apple because it wants to preserve its status as a low-tax base for overseas companies.

Ireland’s finance minister, Michael Noonan, said Dublin would appeal against the ruling. He said: “The decision leaves me with no choice but to seek cabinet approval to appeal. This is necessary to defend the integrity of our tax system, to provide tax certainty to business and to challenge the encroachment of EU state aid rules into the sovereign member state competence of taxation.”

Now, here is the biggest surprise, the link that connects Apple’s frustration to a small hedge firm that was based in London – EU’s competition chief Margrethe Vestager was the former finance minister of Denmark. I am not implying that Margrethe Vestager is connected to Solo Capital or Sanjay Shah in any way. In fact I am certain that Margrethe Vestager has never heard of Sanjay Shah till her country’s newspapers revealed a tax exploitation by his firm.

sanjay shah of autism rocks

Ms. Vestager was the finance minister of Denmark. Danish politics and SKAT blames Sanjy Shah acted alone.

However, the way EU handled Apple’s tax issue gives any sensible person doubts about various claims raised by the Danish government.    After all, Margrethe Vestager was the finance minister of Denmark and the way she handled Apple is nothing short of a mess and the communist impulses underlying in such decisions are hard to ignore. I found it interesting as Danish church still hold significant power in Denmark. You can’t technically register your name in Denmark if you are not a part of the Danish church.

Millions, Billions and Trillions – They Are All Just Numbers. At Least Danish Politics Think So

  1. The average amount of reclaims filed increased by 1,700% from DKK 37,113 in 2010 to DKK 681,007 in 2015

  2. The DTA’s initial report filed on suspected fraud covers 2,120 repayments at a total amount of DKK 6.1bn, corresponding to an average repayment of DKK 3 m in respect of each reclaim.

READ MORE HERE: Part III

We did not drag Margrethe Vestager to our article unnecessarily. As we told earlier, we don’t think she personally have any malicious intends. We are not questioning her integrity. But we can’t ignore the striking similarities between Apple and Solo capital and how numbers changed from time to time. It’s possibly a reflection of Danish politics. It seems alleging people or companies mishandling funds in 8 digit figures is absolutely fine in Denmark. When you change those numbers eventually and zeroes start to fall off, you can simply say “Oops, bummer!”

This kind of stuff can get your political career destroyed in the U.S. This is why such allegations in The U.S comes from individuals that are discerned as loons. Anyone in their right state of mind will wait for enough proof before making staggering allegations there. It’s not tabloid journalism ladies and gentlemen!

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  • James Dias

    Truly intriguing. I would like to see a follow up story on this!