APPLE has become the latest technology company to be accused of avoiding paying tax on UK earnings.
The company is reported to have paid just £10m in UK corporation tax in the last financial year despite earning around £6bn during the same period.
Documents show that Apple's three main UK subsidiaries paid £10.3m in corporation tax in the year to September 25 2010.
Apple joins Amazon and Google in being accused of avoiding UK tax.
Amazon is being investigated by HM Revenue & Customs (HMRC) for possible tax avoidance.
Amazon generated sales of around £7.6bn in the UK, but paid no corporation tax on the profit from that revenue line.
Apple was unavailable for comment.
I can understand a lot of people who are much wealthier than me taking an adverse view of being subject to a 50% personal tax rate and therefore taking tax avoidance measures. They have an ethical position to defend. But avoiding corporation tax to this extent does not afford an ethical defence. I don't want any Apple products, but I am now going to consider alternatives to Google and Amazon carefully.
Posted by: Warren Park, 10 Apr 2012 | 16:33
HMRC and the government should concentrate more on such organisations to effectively collect more tax.
Posted by: John Kasparian, 10 Apr 2012 | 16:35
"Apple was unavailable for comment." Was it ever thus.
"I am now going to consider alternatives to Google and Amazon carefully". Good luck with that. Aren't Microsoft, Sony, Yahoo, Uncle Tom Cobbly and all doing their darnedest to do the same?
Posted by: Infernal Audit, 16 Apr 2012 | 17:20
One of the UK's most vaunted achievements was creating exceptional professional service companies who could help multinational companies minimise tax.
There is lots of tinkering the Government can do at the edges, a well as trying to make sure that companies at least play their part by being good corporate citizens - for instance by employing and training in this country.
But, barring unprecedented change in global regulation (and good luck to you if you're holding your breath for that), the toolkit for moving profit and tax around the world is too strong for us, and beginning even to slip from the US Government's fingers.
Purchase taxes and are the only way to tax in proportion to revenue, which in the long run is the best proxy for underlying profit.
But what Government wants to hike direct consumer taxes?
We planned, designed and built this bed. And if it's a bit uncomfortable after all? We can complain all we like, but in the end we will still be laying down on it.
Posted by: Jeremy of MemorableFinanceDomains.co.uk, 16 Apr 2012 | 17:32
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