Apple Paid No Taxes For 10 Years In New Zealand
Apple is courting controversy once again and reports reveal that it has not paid any tax in New Zealand for over a decade. However, it has sold iPhone and iPads worth billions of dollars in the country during this period.
According to the New Zealand Herald, despite selling products worth $4.2 billion, Apple NZ did not pay a single dollar worth of tax to the Inland Revenue Department of the country since 2007.
Apple's Tax Evasion
Apple Sales New Zealand's financial statements were shared in the report and it reveals that the company paid $37 million in income tax. However, this amount of tax was paid by the company to the identical tax office in Australia, but not in New Zealand.
Apple has faced tax-related issues on numerous occasions and it frequently goes through inspections for its practice of tax avoidance. The Australian Taxation Office (ATO) audited the company and increased the amount of tax Apple was supposed to pay in Australia during 2014 to 2015.
According to the Corporate Tax Transparency report of the ATO in 2014-2015, the amount of taxes paid by Apple is AU$146 million, which is more than double of what it paid in 2013. In 2013, Apple paid AU$72 million as taxes.
"It is absolutely extraordinary that they are able to get away with paying zero tax in this country," said James Shaw, co-leader of Green Party.
He asserted that he is fond of the products made by Apple, as they are extremely creative. However, Shaw mocked the company by saying that Apple is even more innovative when it comes to evading taxes.
Apple's Market In New Zealand
Apple has a huge market in New Zealand, specifically for its top-notch iPhones. According to a report compiled by industry analysts IDC, in three months to December 2016, Apple sold 221,000 smartphones in New Zealand.
Over the past years, the constant growth of Apple has made it the world's largest and most successful company. According to the financial report for the company's local supplementary, Apple Sales New Zealand, the total sales in the country since 2007 is $4.2 billion.
In a report, Apple mentioned that it genuinely obeyed the law. However the company did not say anything directly about its New Zealand issue and inadequacy of tax payment to Inland Revenue.
"Apple aims to be a force for good and we're proud of the contributions we've made in New Zealand over the past decade," said the spokesperson.
The products and services of Apple are originally from the U.S. and that's where the company pays the major tax, added the spokesperson.
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