Apple reportedly declining paying £6.2M tax, despite £1.4B sales
Apple is said to have made £1.4B for its recent financial year, and owing £6.2M in tax, and from documents sources in Apple tax filings, doesn’t intend to pay that tax. On the same tax documents, Apple is reporting £1.35B in expenses that come out of its sales figures, meaning the leftover taxable profit is only £337M.
In its latest annual results filed at Companies House, Apple Retail UK revealed sales for the year to the end of last September of £1.37bn and a gross profit of £337m. However, after accounting for costs and expenses of £1.35bn the computing giant stated a pre-tax profit of just £39m.
This way of filing would leave Apple with a tax liability of £6.2M, but from what comes after the number could be even lower. The filing also states that the payment expects “to be reversed during the next financial period”. This would mean that Apple is expected to report a loss of that much when it comes to filing its next tax reports, in order to claim that money back. The loss is to be expected, during such turbulent times, where it’s retail stores have been shut, but still paying its staff and employees that are in the UK. It will still be seen as something to watch as time goes on by analysts and UK tax system.
The high expenses that they report are because Apple’s UK business funnels money back to the US and to other European countries like Ireland and Luxembourg where it pays a lower rate of tax than it would pay in the UK.
A spokesman for Apple said: “As the largest taxpayer in the world, we know the important role tax payments play in society and always pay all that we owe.
“We are very proud of our many contributions across the UK and last year spent over £2bn with hundreds of suppliers. 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. 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.”
Other companies like Amazon, eBay, Facebook, and Netflix all use similar mechanisms to minimize their UK tax liabilities.