taxes

Apple paid no U.K. tax last fiscal year, despite millions in profits

Apple has found a way to save itself from paying taxes to the U.K., a new report out of the country claims.

Despite generating pre-tax profits of 68 million pounds ($103.6 million) during its last fiscal year that ended in September 2012, Apple didn't pay a single dime in taxes to U.K. authorities, The Financial Times reported Sunday, citing corporate filings with the U.K. government. In the prior year, Apple paid 11.4 million pounds.

So, how did Apple sidestep those taxes? According to The Financial Times, the company awarded millions in stock awards to … Read more

U.K. watchdog demands probe into Google tax affairs

Google should be investigated by the U.K. tax authority HM Revenue and Customes over its tax affairs, according to a parliamentary watchdog.

The search giant came under heavy criticism from the U.K. Public Accounts Committee today for only paying $16 million in tax to HMRC on turnover of $18 billion between 2006 and 2011.

Google achieved this by basing its operations for Europe, the Middle East and Africa in Ireland, which has a corporation tax rate of 12.5 percent, less than half the 28 percent rate in the U.K. It then reduced its Irish tax liabilities … Read more

Apple owes France $6.5 million in unpaid taxes

Apple appears to be delinquent on a hefty tax payment in France.

SACEM, a French society that controls royalties paid to authors, composers, and publishers, said on Friday that Apple owes 5 million euros ($6.5 million) in royalty taxes from iPads sold in France in 2011. The tax, known in France as a copie privee, is levied against all vendors of digital devices that use copyrighted content, according to French blog site The Rude Baguette.

That tax then goes to SACEM, which divvies out the money among the various authors, producers, and other creative folks.

Apple passed on the … Read more

Work wrapping up on global deal to nix tech product duty

A deal among China, Europe, the U.S. and a dozen other countries to eliminate duties on technology products may be reached within the next two months.

U.S. technology groups, including the Information Technology Industry Council, told reporters at a press conference Thursday that they are "optimistic" about solidifying the deal by the end of July, according to Reuters.

Representatives from over a dozen countries in question -- including China and the U.S. -- as well as the European Union met with members of the World Trade Organization this week to discuss the potential agreement. The … Read more

Woz: Apple's tax practices are stinky

Steve Wozniak thinks like Mitt Romney.

Well, a little. It's not that he quite believes corporations are people too. It's more that he thinks corporations should be taxed like people too.

Corporations like Apple, for example.

At a conference in Londonderry, Northern Ireland, Woz told Sky News on Thursday: "Criticism of Apple's tax policies is extremely warranted, in my mind, but my explanation is rather long and difficult."

It's a pity he wasn't asked to testify before the Senate last week. Its members seemed to have all day to listen to Tim Cook. … Read more

Tim Cook: 'We don't use tax gimmicks'

Apple CEO Tim Cook denied that the company was exploiting the tax system to shortchange the United States Treasury and gently chided critics who believe companies that ought to pay taxes to Uncle Sam for products developed here but sold overseas.

"We don't use tax gimmicks," he said Tuesday evening during an appearance at the D11 Conference. During his appearance on stage with D11's co-hosts Walt Mossberg and Kara Swisher, Cook expressed concern that if products developed in the U.S. got taxed here, companies may decide to shift more of their development overseas.

"I'… Read more

Ireland reportedly considering corporate tax reforms

Ireland is reportedly considering tax reforms that would close a loophole allegedly exploited by several multinational corporations -- most notably Apple -- to reduce their tax bills.

In the face of mounting international criticism, the Irish government is considering ways to phase out the Double Irish taxation arrangement, according to a report this weekend in the financial newspaper Sunday Business Post. The technique dramatically reduces a company's tax debt by funneling profits through two linked Irish subsidiaries.

The report did not indicate what specific changes might be under consideration. CNET has contacted Ireland's Department of Finance for comment … Read more

Cook hits back at tax critics, says Apple pays its fair share

Last updated at 10:33 a.m. PT.

After stewing in silence for a couple of hours as a parade of senators and professional experts took turns portraying his company as a tax freeloader, CEO Tim Cook offered an impassioned defense of Apple as a solid corporate citizen.

Apple has become the largest corporate income tax payer in America," Cook told the Senate Permanent Subcommittee on Investigations on Tuesday. He added that last year the company paid almost $6 billion in cash to the U.S. Treasury, or more than $16 million per day.

He said Apple pays "… Read more

Lawmakers lambaste Apple's tax strategy as 'an absurdity'

Apple came in for a bipartisan beating on Tuesday as senators portrayed the company as a global tax avoider which exploited loopholes in the system to escape paying its fair share.

Apple CEO Tim Cook is scheduled to appear this morning before the Senate's Permanent Subcommittee on Investigations. But before then, he had to listen in silence as the leading Democrat and Republican lambasted Apple for working the system in a way they said was unfair, if not unpatriotic.

Read more: Prepared testimony of witnesses

Michigan Democrat Carl Levin, who is chairman of the subcommittee, said that Apple had … Read more