The researchers from TaxWatch, based in the UK says, leading iPhone maker Apple is paying too little tax.
The company was highlighted as one of seven leading firms in the tech world that failed to pay its adequate share of compensation in the form of taxes in the country.
Meanwhile, other leading names that were a part of this list include Amazon, Alphabet, Microsoft, Cisco, Adobe, and Meta. And the figures outlined were shocking as each company was forking out four times less than the figure that should have been covered, the report added.
However, the organization is yet to put the sole blame on the big tech companies because the system should actually be the one making sure such behavior does not happen. But for things to slide by so easily is clearly a point worth mentioning, sources explained.
As the old saying goes, there is a big difference between avoiding taxation and evading it, and that entails a shocking federal prison sentence of nearly a decade.
Apple is being called out for avoiding taxes and while it’s been dubbed legal for so long, the fact that it makes use of such avoidance techniques and is finally turning into a public affair could spell trouble for the firm.
Remember, the Cupertino firm mentioned how its sales across Apple Stores in more than 27 EU nations were produced in places like Ireland and the reason has to do with the fact that its respective headquarters in the European region were there. Therefore, to still be paying much less taxes in that nation is a clear eye-opener.
Since then, we’ve seen Apple take a backseat in terms of the more aggressive nature of the tax avoidance circumstances. Moreover, researchers mentioned how it and a few other major tech firms were listed as paying a quarter of the actual amount in the UK that is due, without considering its mechanism to bypass this.
The findings from TaxWatch says all of the firms outlined above produced a huge profit through customers that were based in the UK since the year 2021. An estimated figure of 18.17 billion USD was called out, to be exact.
As per the newest tax rules from all over the world, it’s seen how such companies are given the chance to transfer the profits to other nations and as a result of this behavior, they were only responsible for paying the yearly tax amount from the UK.
In case the estimated profit value was shifted to another nation, the amount would have actually quadrupled. And that meant the tax figure would be close to 3.2 billion Euros.
While firms alone purposefully engage in such tactics to eliminate tax liabilities, the charitable organization mentioned how they are required to blame such tax laws that enable such an ordeal to arise.
Such tax rules were implemented depending on the trade of those goods highlighted as tangible. But since many of today’s services are dubbed to be digital and profits arise from things like data, AI, and more- it’s understandable why the confusion exists.
Another top factor worth a mention is how transactions are not widely publicized so it gets super hard in terms of making calculations linked to proper allocation.
The OECD also understands this and how global rules taking place in so many different nations can cause discrepancies in terms of how big names carry out business dealings today.
Illustration: DIW
Read next: The Social Media News Exodus From "Like" to "Unlike"
The company was highlighted as one of seven leading firms in the tech world that failed to pay its adequate share of compensation in the form of taxes in the country.
Meanwhile, other leading names that were a part of this list include Amazon, Alphabet, Microsoft, Cisco, Adobe, and Meta. And the figures outlined were shocking as each company was forking out four times less than the figure that should have been covered, the report added.
However, the organization is yet to put the sole blame on the big tech companies because the system should actually be the one making sure such behavior does not happen. But for things to slide by so easily is clearly a point worth mentioning, sources explained.
As the old saying goes, there is a big difference between avoiding taxation and evading it, and that entails a shocking federal prison sentence of nearly a decade.
Apple is being called out for avoiding taxes and while it’s been dubbed legal for so long, the fact that it makes use of such avoidance techniques and is finally turning into a public affair could spell trouble for the firm.
Remember, the Cupertino firm mentioned how its sales across Apple Stores in more than 27 EU nations were produced in places like Ireland and the reason has to do with the fact that its respective headquarters in the European region were there. Therefore, to still be paying much less taxes in that nation is a clear eye-opener.
Since then, we’ve seen Apple take a backseat in terms of the more aggressive nature of the tax avoidance circumstances. Moreover, researchers mentioned how it and a few other major tech firms were listed as paying a quarter of the actual amount in the UK that is due, without considering its mechanism to bypass this.
The findings from TaxWatch says all of the firms outlined above produced a huge profit through customers that were based in the UK since the year 2021. An estimated figure of 18.17 billion USD was called out, to be exact.
As per the newest tax rules from all over the world, it’s seen how such companies are given the chance to transfer the profits to other nations and as a result of this behavior, they were only responsible for paying the yearly tax amount from the UK.
In case the estimated profit value was shifted to another nation, the amount would have actually quadrupled. And that meant the tax figure would be close to 3.2 billion Euros.
While firms alone purposefully engage in such tactics to eliminate tax liabilities, the charitable organization mentioned how they are required to blame such tax laws that enable such an ordeal to arise.
Such tax rules were implemented depending on the trade of those goods highlighted as tangible. But since many of today’s services are dubbed to be digital and profits arise from things like data, AI, and more- it’s understandable why the confusion exists.
Another top factor worth a mention is how transactions are not widely publicized so it gets super hard in terms of making calculations linked to proper allocation.
The OECD also understands this and how global rules taking place in so many different nations can cause discrepancies in terms of how big names carry out business dealings today.
Read next: The Social Media News Exodus From "Like" to "Unlike"
