Ondrej Holzman The American debate about tax avoidance by big companies has just died down a bit, for what even Tim Cook testified before the Senate, another tax case is coming to Apple. This time it is being resolved that he did not pay taxes in Britain last year for a change. But again, he wasn't doing anything illegal.
Apple didn't pay a pound in UK corporation tax last year, according to published company documents, even though its British subsidiaries posted billions in profits. The Californian company got rid of its tax obligations in Britain thanks to the use of tax deductions from its employees' stock awards.
Apple's UK subsidiaries reported a pre-tax profit of £29m as of September 68 last year. Apple Retail UK, one of Apple's two main UK divisions, made a total of £16m before tax on sales of almost £93bn. Apple (UK) Ltd, the second key UK unit, made £43,8m before tax on sales of £8m and the third, Apple Europe, reported a profit of £XNUMXm.
However, Apple did not have to tax its profits. He reached zero sums in an interesting way. Among other things, it rewards its employees in the form of shares, which is a tax-deductible item. In Apple's case, this item was £27,7m and as UK corporate tax was 2012% in 24, we find that once Apple reduced the tax base along with the costs and the aforementioned deductible, it went negative. So he didn't pay a penny in taxes last year. As a result, he can claim a £3,8 million tax credit in the coming years.
As in the tangled web of Irish companies through which Apple optimizes its tax obligations, even in this case the iPhone manufacturer is not committing any illegal act. He didn't pay taxes in Britain just because of his cleverness. Tim Cook's line before the US Senate - "we pay all the taxes we owe, every dollar" – so it still applies, even in Britain.
Haha they are just fighters!! ;)
Absolutely fine. VAT is already up
I love how the aggrieved parties keep calling out that Apple is not paying them multi-millions in taxes. However, they only point to their stupidity in creating the rules and laws that allow these legal "leaks". They are just trying to damage Apple and they could also profit from it with a little effort.
So, instead of the state, the money will be given to the people ;) and those people in Britain will be spent and taxed, so the state will get something out of it anyway ;)