Apple apparently paid no UK corporate taxes on $103 million profit in 2012

By , Jul 1, 2013

Apple logo (American flag, money)

Apple’s clever accounting practices are again under scrutiny after the iPhone maker paid no UK corporate taxes in 2012, despite three units of the California firm making more than $100 million, according to a British financial newspaper Monday. According to the Financial Times, Apple used tax-deductible employee share awards (essentially stock dividends) to “wipe out the corporate tax liabilities of the UK subsidiaries” during 2012 up to September…

“The main British subsidiaries – Apple (UK), Apple Europe and Apple Retail UK – made pre-tax profits of £68m [$103m] in the year to September 2012,” reports The Financial Times (subscription required), citing figures from Companies House, the UK equivalent of the American Securities and Exchange Commission.

The news follows the uproar over Apple funneling the majority of its profits through an Irish subsidiary with a 2 percent corporate tax rate.

Although the news led to Apple CEO Tim Cook testifying before a Congressional panel and denials from Ireland leaders, little action was taken. For what it’s worth, Apple did reportedly boost its lobbying efforts on tax legislation.

News that Apple avoided UK corporate taxes comes as French authorities raid Apple’s offices in that European nation. According to reports, the probe centers on allegations that Apple’s own stores offered better deals on products, hurting local distributors.

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  • Dominik Odobašić

    Just another corporation, run by nothing else but greed. What you consider to be clever accounting practices, reasonable people call fraud.

    • Kaptivator

      I wish my accountant would do something clever with my taxes…sheesh!

  • TBone

    everythings gone after steve is gone, where is apple heading?

  • Pitchy

    Amazing how big companies get away with this kind of tax crap, but if a little bitty citizen tries that, then the government muscle comes out demanding their money.

    • Kurt

      infowars . com will explain why this is

      • Pitchy

        Ron Paul has a great book on this topic as well.

  • Chuck Finley

    “clever accounting practices”? Is your fanboyism completely clouding your judgement or are you just entirely goddamned stupid?

    What it is is tax evasion. Plain and simple. The funny thing is, if this was Google you’d probably be saying “OMG GOOGLE ARE TAX EVADING, WHAT AN EVIL COMPANY” but no, when Apple does it it’s “clever accounting practices”.

    What a load of absolute rubbish.

    • jilex

      just plain and stupid fanboyism, some of the post on this site are good, but others just have a lot of fanboyism…

      • Franklin Richards

        What do you guys really expect? This is after all an Apple oriented site.

    • Kurt

      Pay attention to the writer. ED is the worst, absolute worst on here. His articles always have problems factually or like the above

      • Hyr3m

        I think Christian is worse factually and bias-wise… Ed is pretty strong with the bias too though…

      • Kurt

        Overall I like Ziberg’s writing because its a lot of information. Many people complained about that, but I tell them if you want little writing, little details go to ifans . com. They suck.

        BTW, long time no see brotha man

      • Hyr3m

        Yeah … been busy ^^

        Let’s agree to disagree on this one :P I feel, though, that the more we read those two the more we’ll agree that they’re as bad as the other…

        Take care bro!

  • Jae. Just J.

    Apple didn’t do anything illegal. All companies exploit loopholes in the tax code for their own benefit. What countries, including the USA, need to do is close the loopholes. But the legislators who write the codes get legal graft to keep them open. That is where the outrage should be.

    • Dominik Odobašić

      Just because people kill other people, doesn’t mean I’m not a murderer when I do the same. Tax evasion is illegal, no matter who’s doing it.

  • Patrick

    very clever accounting practices, don’t worry apple, no one will blame you for it;)

  • alex card

    The problem isn’t Apple, Amazon, Google, Starbucks or Costa it’s that the law in the UK hasn’t closed these loopholes. If they can get away without paying tax they will.
    It’s impossible for me as a small business owner to play fair and pay all my taxes and have all these multi-national giants not.

    • Kurt

      Apple and the rest help write these loopholes in. Some laws are entirely written by a company…ie. Monsanto Protection Act. <—Guess who wrote this little gem. A law, that you can't sue them. How nice and legal

      • Hyr3m

        Lobbying ftw ^^

        Watch the movie “Thank you for smoking” if you haven’t seen it… Money > Morality

      • Kurt

        Haven’t seen it. I’ll go search for it now. Thanks