Apple's $59M Australian tax bill in the spotlight as international tax row continues
Apple Australia recorded a gross tax rate of slightly more than 1 percent in 2015, Australian government records indicate, focusing attention once again on the iPhone maker's international tax strategy.
Apple Store on George St. in Sydney
Apple sent just AU$85 million ($59 million) to Australian government coffers last year after recording revenues of AU$7.9 billion, according to the Sydney Morning Herald. Apple Australia reported an after-tax profit of AU$123 million, a AU$51.5 million year-over-year decline.
The iPhone maker -- along with a number of other major multinational firms -- has come under fire from governments around the world in recent years over its tax avoidance strategies. Using legal loopholes and complex arrangements of foreign affiliates, companies like Apple and Google can achieve effective tax rates far lower than the statutory rates.
Last year, Apple warned investors that one ongoing investigation into the company's tax arrangements with the Irish government could lead to a penalty which would have a "material" impact on Apple's bottom line.
Down under, Apple, Google, and other foreign tech firms are facing a legislative backlash over their tax policies. The Australian Tax Office has begun more aggressive audits, currently focusing on Apple's 2012 accounts.
"The Australian Taxation Office is currently auditing the company's tax position for 2012," Apple's most recent filing read. "As at the date of this report, the outcome of the tax audit cannot be predicted with certainty and reliably estimated, no adjustments have been recognised in the financial statements."
An Apple spokesperson told the Herald that "Apple Australia pays all taxes it owes in accordance with Australian law."
Apple Store on George St. in Sydney
Apple sent just AU$85 million ($59 million) to Australian government coffers last year after recording revenues of AU$7.9 billion, according to the Sydney Morning Herald. Apple Australia reported an after-tax profit of AU$123 million, a AU$51.5 million year-over-year decline.
The iPhone maker -- along with a number of other major multinational firms -- has come under fire from governments around the world in recent years over its tax avoidance strategies. Using legal loopholes and complex arrangements of foreign affiliates, companies like Apple and Google can achieve effective tax rates far lower than the statutory rates.
Last year, Apple warned investors that one ongoing investigation into the company's tax arrangements with the Irish government could lead to a penalty which would have a "material" impact on Apple's bottom line.
Down under, Apple, Google, and other foreign tech firms are facing a legislative backlash over their tax policies. The Australian Tax Office has begun more aggressive audits, currently focusing on Apple's 2012 accounts.
"The Australian Taxation Office is currently auditing the company's tax position for 2012," Apple's most recent filing read. "As at the date of this report, the outcome of the tax audit cannot be predicted with certainty and reliably estimated, no adjustments have been recognised in the financial statements."
An Apple spokesperson told the Herald that "Apple Australia pays all taxes it owes in accordance with Australian law."
Comments
I propose that where a company declares income greater than AU$100 M on finished manufactured goods and their profit to be less than 25% of that income, just tax them at 20% of income.
"We don't use tax gimmicks," Cook said. "We pay all the taxes we owe, every single dollar. We don't just comply with the law, we comply with the spirit of the law."
"Send it in."
All this nonsense stems from class bigotry, the most prevalent form of bigotry in the 21st century. Funny how it's condoned by a lot of the same people beating the bigotry drum at every other opportunity.
Christ almighty, do you people have no appreciation for context? They didn't even TRY to make it seem like that was the effective tax rate; in fact, it's clearly labeled "gross tax rate." God forbid they try to inject some semblance of scale so that people who are used to counting their money in the 100s can understand what $60 million really means.
I made a simple proposal of a fix for the tax law which is so broken they might as well say, stuff it, don't pay any tax at all.
This is a witch hunt by corrupt politicians who see yet another way to line their pockets under the guise of righteous indignation, both on the left and on the right. All governments are corrupt at their core. So are corporations. This is a pissing contest between billionaires and the public won’t see any benefits either way the fight ends, accept for maybe higher iPhone prices.
There are plenty of admissible lies. Deferring income to another tax season is a lie, but one that is accepted in certain circumstances.
Australia has some very strict transfer pricing laws, so are you sure that Apple did nothing illegal? Your tone suggests to me that you're taking an emotive stance on this rather than an informed one.