Finance Finance News This is how little tax Apple is paying

This is how little tax Apple is paying

Apple claims its playing by the rules.
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Despite technology giant Apple making almost $8 billion in local revenue last financial year, it paid just $85 million in Australian income tax, Australian Securities and Investments Commission (ASIC) documents have revealed.

The company listed higher marketing, distribution and sales expenses of $435 million than the previous year and its administrative expenses were recorded at $30.7 million, Fairfax Media reported on Wednesday.

The company is being audited by the Australian Taxation Office (ATO).

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A Senate inquiry into corporate tax avoidance, which has questioned executives from major tech companies Apple, Google and Microsoft, continues.

“Apple Australia pays all taxes it owes in accordance with Australian law,” an Apple spokesperson told Fairfax Media.

Apple’s tax bill actually increased from 2014/15 when it paid $80.3 million from $6 billion in revenue.

Its profit after tax was $123 million in 2015/16, down from the $171.5 million it earned the previous year.

The ATO warned the figures could change during the auditing process.

“The Australian Taxation Office is currently auditing the company’s tax position for 2012,” the ATO told Fairfax Media.

“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.”

During the Senate inquiry Apple was accused of using a structure known as a “double Irish sandwich with Dutch associations”, where it would direct profits though Ireland which would reduce tax significantly.

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