Apple is the latest tech giant to be identified as paying a mini amount of tax, with the iPhone-making company forking out just 1.9 per cent of its profit in tax outside the US.
Apple paid out $713m (about £446m) in overseas tax, in the year ending 29 September. A tidy sum, but less than 2 per cent of the company's gargantuan $36.87bn (roughly £23bn) profits, the Guardian reports. That's not much of a contribution from one of the world's richest entities.
While there's no suggestion that Apple has done anything illegal, the amount of tax it's paid is well below the UK corporation tax rate of 24 per cent. The BBC comments that Apple funnels much of its European trade through an Irish subsidiary -- but even Ireland charges 12.5 per cent corporation tax.
Apple isn't the only tech company involved in this practice. Facebook and Amazon have also been observed getting creative with the corporate calculator, while Vodafone has found itself in the spotlight in recent years as well.
Google's tax wiggling was called "entirely improper and immoral" by one MP, while Microsoft's acquisition of Skype may have seen the taxman short of £2.6bn.
This isn't the first time Apple's tax dealings have been under scrutiny. The glossy gadget-maker -- which paid out 2.5 per cent overseas tax last year -- pioneered tax-avoidance tactics, according to an in-depth report in the New York Times.
Presumably Apple's investors would be a little fed up if the company stopped finding ways to keep its tax payout to a bare minimum, but do massive corporations have a duty to pay more tax in nations they operate in? Tell me in the comments or on our Facebook wall.
Android App 
RSS Feeds 
iPhone App 
Newsletters 
Comments 19
Add your comment
CaptainPicard 5 November, 2012 10:09
Just pure greed from the lot of them, Apple, Google, Microsoft and Im sure there are lots more. Its not like these companies are struggling. But I blame the government, they can close all these loopholes or stop trading with tax havens, but instead they go after us peasants.
Tim Acheson 5 November, 2012 10:29
Apple fanboys and apologists are running out of statistics to hide behind.
Apple is in decline. The corporation is too dependent on iOS and its most important products are being eclipsed by superior gadgets which are also much cheaper. We no longer see those long queues of crazy people for product launches. Consumer demand is in free-fall.
Jamie Ross 5 November, 2012 10:32
It's shameful that huge corporations that can afford to pay people to exploit tax loopholes are able to manipulate the law in order to avoid paying tax. Whilst I don't in anyway condone the actions of companies like Apple, Microsoft, Amazon, Starbucks or Vodaphone, the blame has to lie with UK tax regulations and the unwillingness of the government to clean up tax laws to make deliberate tax avoidance impossible. If a sale a occurs in the UK, those profits were generated in the UK, so the UK should receive the tax it is owed.
It is completely unfair for an employee of a company like apple to be paying up to 45% of their income in tax, whilst the company they work for can pay a fraction of that.
anonymous 5 November, 2012 10:33
I would close all they shops and webpage until they not pay normal UK tax..
ItsAllGood 5 November, 2012 11:02
Apple is going to sue facebook, Amazon and Vodafone for copying their tax avoidance tactics.
Peter Hudson 5 November, 2012 11:49
I really don't get why people are so bothered. We live in a culture that is based on Capitalism, but we complain when large corporations act in a strictly capitalist way. Capitalism isn't a moral system, it's designed to do whatever it takes to make money short of anything illegal. And what these companies are doing is not illegal.
anonymous 5 November, 2012 11:57
I am getting fed up with these big corporations making millions and not paying for the privilege of fleecing us. Not only do they not pay for this privilege but they also price fix as well... and Apple were the pioneer of that also.... If they sell a product in a country they should pay tax based on that sale, not on the subsequent movement of that profit to foreign shores. I'm sorry to say that I have spent over £2000 with Apple in the past year... it won't happen again!!!!
anonymous 5 November, 2012 13:12
So they pay the taxes in the country they are selling plus 2% to US, that's absurd
anonymous 5 November, 2012 13:14
@Peter Hudson a true idiot, you can bang on about capitalism all you want people are allowed to be pissed with this people out there work very hard and pay the tax they're meant to pay
anonymous 5 November, 2012 13:44
@Peter Hudson you are idiot! people are allowed to be pissed off
Peter Hudson 5 November, 2012 13:52
Don't get me wrong, it is completely immoral that these companies aren't paying more. All I'm saying is that they are paying just as much as they have to under our country's tax laws. There's no point in being enraged by these companies. They are never going to volunteer to pay more tax. We should focus our anger at the government that allows this sort of thing to go on.
anonymous 5 November, 2012 14:17
Seriously this is such as major issue I really can't understand why the UK government hasn't stepped in and closed all these loop holes to prevent big companies such as Apple, Facebook, Amazon and Google getting away with robbery technically. The on ly thing I can think of is that the government is getting a lot of backhands to prevent any changes being made in legislation. You also never here any talk of this really in the news, they kind of just brush it under the carpet while people struggle to make ends meet and these companies role in it. Something needs to change...Less talk and more action I think.
AkumaJack 5 November, 2012 14:33
@Peter is right, i'm sad to say, apple are just taking advantage of the situation. To pay less than 2% is a joke and its the law makers that have left this massive hole for them to get through and only leave 2%. Its crazy that someone on min wage will have to pay a higher percentage then a company the size of apple & it just doesn't stop there, so many companies are doing the same thing and a lot of these companies are based in the UK are paying 2-3% tax. We are all meant to be in this together but its a joke that these companies can get away with this but the tax office come down hard on people who are on far far less.
AkumaJack 5 November, 2012 14:41
this article will open your eyes : http://www.guardian.co.uk/commentisfree/2010/oct/22/vodafone-tax-case-leaves-sour-taste
James Katt 5 November, 2012 15:31
This is why it is so important to invest and earn money from overseas and keep it there - particularly in the Netherlands and Ireland and the Cayman Islands.
anonymous 5 November, 2012 18:02
Its a common trend for multi-nationals, and you can't blame the UK government on their own. there are so many international tax agreements, its a lot more complicated than just 1 country changing their tax rules and closing some loopholes.
Best solution - support and get behind a local manufacturer and software developer!
anonymous 5 November, 2012 20:13
Apple products are designed to break down in about 2 years.Planned Obsolescence is part of apple product.Imagine an iPhone which will last 8 years or more( is possible to build one like this in similar price), but selling fragile good looking crap is much more profitable in Capitalistic World..
anonymous 5 November, 2012 22:41
@20:13
I'm on my 3rd S3.... I gave my dad my old iphone3gs which was purchased days after original release.
Guess which ones never fooked up? The clues in the first sentence.
I now try reserving an i5 every morning at 9am.
Not such s powerful phone but at least it might not be as riddled with third party hardware issues!
Adam Domanski 7 November, 2012 13:11
"Apple is in decline. The corporation is too dependent on iOS and its most important products are being eclipsed by superior gadgets which are also much cheaper. We no longer see those long queues of crazy people for product launches. Consumer demand is in free-fall."
Really? Another article on the site today claims that the new iPads sold 3 million units on their first weekend on sale. Now I'm hardly an Apple fanboy, but that doesn't sound like decline to me.