Apple New Zealand, and all tax avoiding corporations, must pay their fair share of taxes says Oxfam today, following the European Commission ruling that Apple should pay up to NZ$20 billion in back taxes to the Irish Government.
Apple New Zealand, and all tax avoiding corporations, must pay their fair share of taxes says Oxfam today, following the European Commission ruling that Apple should pay up to NZ$20 billion in back taxes to the Irish Government.
Last year, Apple’s New Zealand company, called Apple Sales New Zealand, raked in over NZ$730 million in sales. However the company shelled out under NZ$9 million in income tax to Inland Revenue, a rate of just over one per cent.
Rachael Le Mesurier, Oxfam New Zealand’s executive director, said:
“When there is so much inequality and poverty, it is utterly unacceptable that large corporations like Apple don’t pay their fair share of taxes. The company is making hundreds of millions of dollars here in New Zealand, but appears to be paying a tax rate of just over one per cent. That can’t be right, and must be fixed.
“The schemes and deals that allow multinationals to minimise their tax, whilst legal, cannot be tolerated. If people are to have trust in the tax system, all governments, including New Zealand, must act immediately to end tax dodging.
“Companies must be forced to disclose where they generate their profits and where they pay their taxes. This would give governments and civil society the ability to hold these companies to account.”
References for the above figures:
‘iPhone maker and music retailer Apple Inc is one of the most profitable companies in the world, but a Herald analysis of its accounts shows its New Zealand operation appears to barely break even.
Apple Inc’s New Zealand subsidiary Apple Sales New Zealand recorded $732 million in sales for the year, up nearly a third from 2014. But despite this stellar growth in sales the company reported relatively meagre profit margins here of only 3.6 percent, after its parent billed $702m for costs of goods sold. That transaction led to the subsidiary reported profits of only $17.8m, leading to a mere $8.8m being paid in income taxes to Inland Revenue.’
From: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11607336
‘Apple’s revenue was reportedly more than $700m and it made a $17.7m profit in New Zealand in the financial year ending September 2015, with a tax bill of $8.9m.’
From: http://www.stuff.co.nz/business/industries/83741844/Not-such-taxing-times-for-Apple-Facebook-Google-in-NZ
