Company fined $10 million for misinterpreting government tax rule
Apple has had to pay 452 million Chinese yuan ($71 million US) in back taxes in China, along with a 65 million yuan ($10 million) fine after an audit by the Ministry of Finance, which has recently been cracking down on taxation of US companies, showed the company understated its sales and over-reported its profit. The iPhone maker, which has recently risen from seventh to third place in the Chinese market (after briefly reaching the top spot) did not contest the finding.
Commission may demand back taxes avoided due to Irish corporate tax laws
Apple has filed its latest quarterly report with the US government, and in so doing noted that an ongoing European Commission investigation of Ireland and its government's corporate tax rate could "require Ireland to recover from the company past taxes covering a period of up to 10 years reflective of the disallowed state aid," calling that potential amount "material." While difficult to gauge, the eventual impact could be in the billions for Apple.
Company is one of many under investigation for aggressive-but-legal tax avoidance
Apple paid more than twice as much in taxes in Australia for 2014 as it did in 2013, but still managed to grow profits in the country -- despite increasing scrutiny about its legal but aggressive tax avoidance techniques. According to documents filed with the Australian Securities and Investments Commission (ASIC), Apple paid AU$80.4 million in taxes for 2014 ($64 million US) compared to just AU$36.4 million (roughly $32 million US at the time) in 2013.
China report indicates Microsoft will pay $16.2M per year in additional taxes
Microsoft's tax troubles aren't limited to the US, according to a report from a Chinese news agency. The software company is being accused of tax evasion in the country, after years of posting heavy losses in a Chinese-based subsidiary. As a result, Microsoft is paying the Chinese government $137 million in back taxes and interest.
Software company turns to court over unfulfilled Freedom of Information Act request
Microsoft filed a lawsuit against the Internal Revenue Service (IRS) on Monday, seeking information relating to the agency's probe into the software giant's tax records. The suit, filed with the US District Court for the District of Columbia, accuses the IRS of "unlawfully" withholding information that was requested through a Freedom of Information Act (FOIA) request.
Analysts predict solid holiday earnings boost for Amazon
A solid performance this past holiday season may have left online retail giant Amazon with as much as $9 billion in cash and investments. This according to industry analysts and investors, who are forecasting larger than ever revenues for the retailer's December quarter. The financial success, though, could spell trouble for Amazon, as the growing cash pile could lead to renewed scrutiny over the company's tax contributions around the world.