Apple hit with AU$28.5M tax bill

Apple hit with AU$28.5M tax bill

Summary: The Australian Tax Office has reportedly asked Apple to pay AU$28.5 million in back taxes.

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The Australian Tax Office (ATO) has reportedly sought to collect AU$28.5 million in back taxes from tech giant Apple in a sign that the government is cracking down on foreign tech companies.

The Sydney Morning Herald reported over the weekend that statements lodged with the corporate regulator show that Apple's Australian arm was hit with an AU$28.5 million bill for back taxes in April this year. According to the report, Apple Australia pulled in AU$4.9 billion in revenue in the last year, and its total tax bill to September 24, 2011, was AU$94.7 million.

According to figures released this year, Apple earned non-US profits of US$36.87 billion for the 2012 financial year ending September, and only paid US$713 million in overseas taxes.

Google came under criticism earlier this year, when it was revealed that Google said its Australian division is making a loss. The company only paid AU$74,176 in taxes in the last financial year, despite estimations that Australia is worth around AU$1 billion to Google every year.

Legislation regarding transfer pricing rules was passed earlier this year. The change aims to make it tougher for multinational companies such as Apple and Google to transfer their money out of Australia to a country with a lower corporate tax rate, such as Ireland.

It comes as Apple also faces increasing pressure from politicians in Australia to front up to an inquiry into premium pricing on technology products in Australia. Although Apple's product pricing in Australia is now generally in line with prices in the US — after taking into account the GST — the company has been reluctant to make a public appearance at the hearing. The Cupertino, California, giant may be compelled to appear before the committee by the parliament.

Topics: Apple, Government, Government AU

About

Armed with a degree in Computer Science and a Masters in Journalism, Josh keeps a close eye on the telecommunications industry, the National Broadband Network, and all the goings on in government IT.

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9 comments
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  • Proof that Apple is crooks

    And that only sheep buy Apple products. People who buy Microsoft products are better humans and smell better. Surface Is A Hit! TM.
    gregv2k
    • I guess that means that Google is the devil

      RTFA ... Google is actually worst according to the article.

      But as usual, idiots only read the "click-bait" titles and ignore the story.
      wackoae
    • Dude . . .

      . . . take your meds!
      Gr8Music
  • Peanuts

    On $4.9B the profit is $1.2+, this is peanuts to Apple.

    p.s. I sure dislike the far right and left in both technology and politics... hey gregv2k get a life & why can't I edit my powerpoint slides on the Windows 8 RT Surface? Not productive!
    nrkmann@...
    • ANSWER:

      RT is a consumption device not a production device. It's version of prwerpoint is only for viewing presentations not making or editing them silly boy!
      AnAxe2Grind
      • My point exactly!

        Or did the sarcasm not come through?
        nrkmann@...
  • Can you edit them on a comparable device ?

    Can you edit them on your iPad? Or Android? I could look myself but I'm sure you'll know the pros and cons to save me the effort.
    johnmckay
    • I can

      My Android does thought I don't know why anyone would.
      gunship630
  • It's crazy but at least Aus are taking action.

    Europe is busy postulating whilst Apple, Starbucks, Google all make out they dont make a profit. I'm sure the shareholders will rally at the next AGM and tell them to get out and make money elsewhere instead.

    From past experience, a certain ATM company used to do a markup on spares where the cost in dollars became pounds essentially, then doubled again in some circumstances. I think we can all see how you run at a loss, profitably under those circumstances.

    Maybe one day businesses will be taxed on their revenue and force them to look at their efficiency properly.
    johnmckay