Home news Apple pays UK £137m in back taxes after audit

Apple pays UK £137m in back taxes after audit

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Apple has handed over an extra £137m to HM Revenue & Customs (HMRC) following a probe into its tax payments going back years.

Apple Europe – which handles the tech firm’s UK marketing – said the taxman had carried out an “extensive audit” of its UK operations dating before 22 September 2015.

The filing, at Companies House, said: “This payment of additional tax and interest reflects the company’s increased activity and is recognised in the current financial period which ended on 1 April 2017.
“As a result of this adjustment the Company’s corporate income tax payments will increase going forward.”
According to the Financial Times, HMRC argued that Apple Europe had not received a large enough commission on the sales it helped secure from Apple’s main international business, which is based in Ireland.

Image: The taxman has told Sky News it will not settle for less than is due by any company
The £137m settlement meant that Apple Europe booked a total payment of £194m for the 18 months to 1 April 2017, paying £57m on its pre-tax profits of £297m for that period.
Apple’s corporate tax arrangements have long been a source of frustration for national governments and the EU.
The European Commission has forced the government in Dublin to claw back £11bn in back taxes from Apple – ruling benefits the company received under Ireland’s low corporate tax structure were unfair and illegal.
Commenting on the payment, the company said: “We are proud that Apple is an engine of economic growth in the UK through the fast-growing iOS App Economy and our own expanding workforce, which will be housed in a new campus at the Battersea Power Station.

“Last year we spent nearly £2bn with British suppliers and, all told, our investment and innovation now supports over 300,000 jobs up and down the country.
“We know the important role that tax payments play in society.
“Apple pays all that we owe according to tax laws and local customs in the countries where we operate.
“As a multinational business and the largest taxpayer in the world, Apple is regularly audited by tax authorities around the world.
“HMRC recently concluded a multiyear audit of our UK accounts and the settlement we reached with HMRC is reflected in our recently filed accounts.”

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An HMRC spokesperson told Sky News: “We do not comment on the tax affairs of individual companies. Multinational companies must pay all taxes due and we don’t settle for less.
“Last year alone, HMRC secured and protected over £8bn in additional tax revenue from the largest and most complex businesses.”

Source: Sky News