The New Zealand Herald’s analysis of the local subsidiary’s financial statements has revealed that for the last ten years, Apple paid taxes to the Australian Tax Office instead of New Zealand’s Inland Revenue. The Cupertino company appears to have paid out $37 million in income taxes from sales generated in New Zealand, but to Australia’s tax authority.
Later this week, Apple and the government of Ireland will appeal against the European Union’s $14.5 billion tax ruling targeting Apple’s sweetheart tax deal with Dublin that the EU deemed “illegal state aid.” According to Reuters today, the Cupertino firm will object to the fact that EU regulators ignored established tax experts and common corporate law.
Apple’s legal strategy involves painting itself as a victim of its own success. EU deliberately singled out Apple due to its success and picked a method to maximize the penalty, said Apple’s top lawyer Bruce Sewell.
French tax authorities have recently issued Apple a fine in the amount of 400 million euros (about $422 million), according to L’Express. At the core of the adjustment is Apple’s complex and controversial tax optimization scheme that allows the firm to send back the lion share of its profits to tax-friendly countries such as Ireland.
Apple reportedly asked contract manufacturers Foxconn and Pegatron to look into assembling iPhones in the United States and now we learn that Tim Cook phoned President-elect Donald Trump following his victory to talk about U.S. manufacturing.
In an interview with The New York Times, Trump reveals he’s promised tax incentives to Apple to build its products domestically rather than outsource component production and assembly work to Taiwanese and Chinese suppliers and contract manufacturers.