Tag - Tax
Apple has paid just £12.9 million ($17 million) in corporation tax in the United Kingdom last year, it has been discovered, an increase from £11.8 million in the previous year. The relatively low corporation tax payment revelation comes as the investigation into the company's tax minimization activities across the European union nears completion, with the UK corporation tax level also seeming to be fairly low in comparison to how much profit it generated in the country alone.
The probe by the European Commission into Apple's tax arrangements may come to an end soon, possibly next month, according to one official. Irish finance minister Michael Noonan believes the Commission could offer its ruling in July, one that will decide the legality of Apple's movements of funds through specific countries to avoid paying high amounts of tax, as well as other arrangements beneficial to the company provided by EU member states.
Apple will not be able to stop the European Union's investigation into whether or not it has paid the correct amount of tax on the continent if it moved all of its funds from overseas to the United States, EU competition commissioner Margrethe Vestager has advised. The investigation, which has taken place against a number of companies accused of abusing tax laws across a number of countries to minimize taxes paid, will continue regardless of Apple's actions.
A major leak from a law firm that suggests Foxconn has avoided paying as much as $22.86 billion in taxes has been strongly denied by the company. The major device assembler, known for putting together the iPhone along with other well-known products, has dismissed claims stemming from the "Panama Papers" leak that it was actively evading payment of taxes by making investments in Panama, an act many other prominent figures and companies have also been accused of performing.
Apple will remain "committed to Ireland," regardless of the outcome of its tax investigation by the European Union, the vice president of the company's European operations. Speaking to a panel of European Parliament lawmakers the day before Apple and other companies were scheduled to testify about their tax affairs, Apple's Cathy Kearney argues that the iPhone maker pays all due taxes in the country, and it does not receive any unfair advantage from local authorities for operating in the region.
A group of major companies are going to be questioned by the European Parliament's tax committee about their European tax arrangements on Wednesday. The group, which includes tech companies Apple and Google alongside McDonald's and Ikea, will be asked questions by the committee, in an attempt to find out more details about how the companies set up their tax payments and deals with countries, in order to avoid paying what is believed to be significant amounts of tax.
The European Union's competition chief has warned reporters "Don't hold your breath" for a quick ruling concerning Apple's Irish tax affairs. Speaking in Brussels, Margarethe Vestager was "warning" anyone expecting a result in the investigation anytime soon that they may have to wait for longer, as the European Commission continues its thorough examination into how major tech companies move funds around to minimize how much tax they pay.
A new advisor to Russian President Vladimir Putin wants to increase taxes stemming from US companies trading in the country, in an attempt to try and make it easier for local competitors to take on their American counterparts. German Klimenko, the country's Internet czar, is going after Apple, Google, and Microsoft just six weeks after taking the role, with the taxation plan expected to help raise revenue for the government at the same time as making services such as Yandex and Mail.ru more attractive to citizens.
Following a meeting by Apple CEO Tim Cook with the head of the antitrust investigation against Ireland on behalf of the European Commission, Apple's CFO has told London's Financial Times that should Ireland be found guilty of giving companies like Apple "special state aid," Apple should owe nothing in back taxes. The crux of remarks by Luca Maestri is that Apple did not receive any special deal from Ireland, but if Ireland illegally lowered its tax rate to benefit corporations, it is the state -- and not the companies that benefitted from the lower rate -- that should pay any penalties.
Apple has received some unexpected support from the outspoken Mayor of London, concerning its European tax investigation. Mayor Boris Johnson wrote in defense of Apple's attempts to pay as little tax as possible on its European earnings, suggesting it is only following the rules of the tax systems across the continent to its advantage, and that the European Commission shouldn't be trying to fix something that the Irish government intended to happen.