Apple makes $1.8 billion in UK, but pays just $8m in tax
Latest financial filings show Apple made only a small tax payment to the UK, and it expects that to be reduced further following subsequent coronavirus costs.
Inside Apple Covent Garden in London
As Apple and other global technology firms face the prospect of new regulations -- which Tim Cook has said he supports -- the latest filings show the company is paying little or no tax in the UK. Its filings to September 2019 show a deferred tax requirement of $8m from annual sales of $1.8 billion, but it may not even pay that much.
According to inews, Apple's annual filing at the UK's Companies House states that it expects this $8m payment "to be reversed during the next financial period."
Apple has responded to criticism of its low contribution to the UK's economy by arguing that it supports the region in other direct ways. "We are very proud of our many contributions across the UK and last year spent over 2 billion [$2.51 billion] with hundreds of suppliers," said a spokesperson.
"Our investment and innovation supports more than 325,000 jobs in the UK and, in addition to our tax contributions, we also think it's important to do more for people and society," continued Apple.
That last point was directed specifically to how the company expects to regain its tax payment because of coronavirus costs since the latest filing. "We focused our attention on supporting the response to Covid-19, making significant financial contributions and donating face masks and shields here in the UK," said Apple.
The inews report was first spotted by 9to5mac.
Inside Apple Covent Garden in London
As Apple and other global technology firms face the prospect of new regulations -- which Tim Cook has said he supports -- the latest filings show the company is paying little or no tax in the UK. Its filings to September 2019 show a deferred tax requirement of $8m from annual sales of $1.8 billion, but it may not even pay that much.
According to inews, Apple's annual filing at the UK's Companies House states that it expects this $8m payment "to be reversed during the next financial period."
Apple has responded to criticism of its low contribution to the UK's economy by arguing that it supports the region in other direct ways. "We are very proud of our many contributions across the UK and last year spent over 2 billion [$2.51 billion] with hundreds of suppliers," said a spokesperson.
"Our investment and innovation supports more than 325,000 jobs in the UK and, in addition to our tax contributions, we also think it's important to do more for people and society," continued Apple.
That last point was directed specifically to how the company expects to regain its tax payment because of coronavirus costs since the latest filing. "We focused our attention on supporting the response to Covid-19, making significant financial contributions and donating face masks and shields here in the UK," said Apple.
The inews report was first spotted by 9to5mac.
Comments
The more we can starve the government of income the less destructive it will be for the people. Apple should not pay one penny more in taxes than it absolutely has to. Use every loophole, every legal means to reduce one's tax bill. That should be everyone's personal motto too.
Like Apple, I too only paid the taxes that were due.
Many of the brightest economic minds would also disagree with your last sentence, but this is an Apple fan site, so who cares to get into it
Well managed government is definitely the solution to many of our problems.
Then again, misinformed assumption isn’t knowledge.
Goodness, people. We pay income taxes, state and federal taxes, sales taxes, local taxes -- so many types of taxes in fact that not a single person on this planet, or corporation, can avoid even half of those. If a company pays more, you end up paying more when you buy their products! Seeking lower taxes is no different than being enslaved and seeking freedom. That truth doesn't undermine the need for taxes either. Rather, it merely helps us put taxes in perspective. There are huge benefits to smaller, less overbearing government. Lower taxes keeps any government in check by We The People. We really out to consider the good in that, not give up everything we to Big Brother have in hopes of getting everything we need and having the money wisely spent by the wealth redistribution machine.
Funny, it was President Kennedy, a Democrat, who said, "... ask not what America will do for you, but what together we can do for the freedom of man." I wish we so-called "freedom" loving Americans could get back to that common goal, where party doesn't matter and we all pretty much understand what's right and what's not.