Apple’s tax avoidance has been something of a major point this year. Not long ago CEO Tim Cook and COO Peter Oppenheimer appeared in front of the U.S. Senate to discuss its tax practices. In that questioning period, Cook claimed the company paid $6 billion in taxes to the U.S. government that year. And – while that may be true – the company isn’t being so forthright with its contributions abroad.
In the UK last year, both of Apple’s registered companies made millions of British pounds in profit, and managed to avoid paying a single penny back due to some shuffling around of share awards.
The first of Apple’s two main UK divisions, Apple (UK) Ltd made profit of £43.8m on sales of around £93m. A second registered division, Apple Retail UK Ltd, turned over £1 billion with a profit of £16 million. In total, Apple made £59.8m in pre-tax profits and paid no tax.
As noted by The Telegraph:
“…the company offset tax deductions relating to share schemes of £27.7m against its corporation tax liabilities in the UK. The move also enabled it to claim a tax credit of £3.8m to carry forward to future years. Experts have also suggested Apple’s total sales in the UK are far higher, as many are logged elsewhere.”
Apple is by no means the only company to operate in such a way. Perhaps the two biggest tax avoidance stories of the past 12 months have included Starbucks whose tax revelations caused millions to boycott the popular coffee house. The other: Vodafone. Of course there are many more, but with the government desperately trying to find means of plugging the debt hole and avoid another recession, if could do with re-approaching corporate tax law in a way which ensures that large, multi-million pound companies pay what they owe.
Via: The Telegraph