Apple Accued Tax Theft

Apple Avoiding Paying Tax on UK Profits in 2012

Apple has been accused of using share options for staff to offset taxes it would have otherwise had to pay in the UK on revenues of nearly £1 billion last year.

Citing company accounts, the Daily Telegraph noted that Apple Retail UK Ltd made a pre-tax profit of £16 million on sales of almost £1 billion in the twelve-months to the end of last September.

The company also made a pre-tax profit of £51.8 million from two other UK registered subsidiaries.

However, the company was then able to claim tax deductions worth £27.7 million for share awards granted to its employees. In fact, the company had a net tax loss, and was able to carry forward £3.8 million in tax credits against future profits.

Apple is also suspected of possibly having higher sales to UK consumers than is being reported as the sales are routed via lower tax jurisdictions. Apple routes an unspecified amount of its sales via Ireland, which has a lower tax rate than the UK.

Google is facing an investigation in the UK for a similar practice, while Amazon has been criticized for routing most of its UK sales via Luxembourg, leaving the UK as just a distribution centre.

On the web: Daily Telegraph