Apple asked to pay hundreds of millions in back taxes in Australia in wide-reaching probe
Apple is reportedly one of seven multinationals the Australian Taxation Office has asked to pay hundreds of millions of dollars in back taxes, accusing the corporations of using tactics like "debt dumping" and moving profits offshore to avoid obligations.
Other targeted companies include Microsoft, Google, BHP Billiton, and Rio Tinto, according to Daily Telegraph sources. Collectively the group are said to owe A$2.9 billion -- it's not clear how much Apple might have to pay, but individual bills are said to range between A$250 million and A$800 million.
The ATO is meanwhile said to be preparing audits of many other large businesses, some examples being Singtel, Crown, Shell, Chevron, and Glencore.
The Office's commissioner, Mark Konza, wouldn't confirm the companies involved but said that the government has had a taskforce of over 1,000 people looking into avoidance by multinationals.
He has also reportedly flown to Silicon Valley twice to warn companies in person, and after sending the recent bills, was contacted immediately by three firms. One of them has flown a tax team to Australia for negotiations.
While Apple's response is so far unknown, the ATO said that while it expects some corporations to settle, it's prepared for others to pursue cases at the country's Federal Court.
Apple has been accused of using tax avoidance schemes in several parts of the globe, most notably in Ireland, which the European Commission has asked to collect some $13.8 billion in back taxes. Both Apple and the Irish government are appealing the ruling.
Another report recently noted that Apple has paid no income taxes in New Zealand for the last 10 years, and in fact chosen to pay that money in Australia, where the New Zealand division's parent company is based.
Other targeted companies include Microsoft, Google, BHP Billiton, and Rio Tinto, according to Daily Telegraph sources. Collectively the group are said to owe A$2.9 billion -- it's not clear how much Apple might have to pay, but individual bills are said to range between A$250 million and A$800 million.
The ATO is meanwhile said to be preparing audits of many other large businesses, some examples being Singtel, Crown, Shell, Chevron, and Glencore.
The Office's commissioner, Mark Konza, wouldn't confirm the companies involved but said that the government has had a taskforce of over 1,000 people looking into avoidance by multinationals.
He has also reportedly flown to Silicon Valley twice to warn companies in person, and after sending the recent bills, was contacted immediately by three firms. One of them has flown a tax team to Australia for negotiations.
While Apple's response is so far unknown, the ATO said that while it expects some corporations to settle, it's prepared for others to pursue cases at the country's Federal Court.
Apple has been accused of using tax avoidance schemes in several parts of the globe, most notably in Ireland, which the European Commission has asked to collect some $13.8 billion in back taxes. Both Apple and the Irish government are appealing the ruling.
Another report recently noted that Apple has paid no income taxes in New Zealand for the last 10 years, and in fact chosen to pay that money in Australia, where the New Zealand division's parent company is based.
Comments
The "targeted companies include Microsoft, Google, BHP Billiton, and Rio Tinto"
Apple isn't even in the source article's headline. That company would be Rio Tinto. Apple is just thrown in with those other companies mentioned.
Kill the loopholes. Stop this mess.
Under Australian tax law, you need to comply with the intent , not just the letter of the tax code, and the tax office can effectively retrospectively change the law.
Essentially, the ATO is taking the position that transfer pricing between subsidiaries , is used to reduce tax, and shift taxable income to low tax jurisdictions . They are hitting up lots of companies , of which Apple is one - including g Australian companies that do the same thing.
The ACCC position is very clear , and the consumer protection law in Australia is pretty strong . All the good stuff Apple does doesn't count as credit for the handful of things they do that are wrong or illegal
You're being level-headed and unbiased. Heads will explode here.
Osborne, our previous chancellor, was using the same off-shore loopholes as the companies he was insulting in the press.
Yes they should close the loopholes, but they haven't found a way to exempt themselves yet.
This was old when Hector was a pup, which is to say as far back as anyone anywhere started working deals to make some sort of profit. Surely you didn't miss the memo?
So the Federal Reserve in the US is controlled by the banks or gets pressured into doing things by banks?
Until very recently we had laws put in place to stop banks from reverting to their natural base instincts which are to scam their investors, make outlandish investments and screw their customers.
As far as the big banks there go, well there are banks there that are fully supporting Apple Pay so its only a matter of time before the ones that are trying to be bullies and take control of TouchID are forced to comply or risk losing more customers. I've read here and other places where more and more Australians are switching banks to ones that support Apple Pay so its already happening.
Who advises the president and congress on how to regulate banks and shape US fiscal policy? Bankers. This is fact.