Apple paying less than 2% tax on overseas profits in the billions
Apple is paying less than 2% tax on its profits from overseas sales which are thought to be in the region of 37 billion dollars. The details were revealed in Apple’s 10K filing which was presented to the US Securities and Exchange Commission. The news comes for UK newspaper The Guardian
The iPhone and iPad maker paid $713m (£445m) in overseas corporation tax on foreign profits of $36.87bn (£23bn) in the year to the end of September. That translates as a tax rate of 1.9%, compared to a headline corporation tax rate of 35% in the US and 24% in the UK.
The details were revealed in Apple's 10K filing with the US Securities and Exchange Commission (SEC). Apple has not broken any laws by arranging its tax payments this way, but it is likely to reignite debate about the astonishingly small amount of tax US multinationals pay in the UK.
Google, Amazon and Starbucks have also been in the news lately for similar low tax payments in the UK and are set to appear before the Commons public accounts committee later today. They will be given an opportunity to explain why they don’t pay the proper levels of tax. According to the report, Prime Minister David Cameron is not happy with the current situation which allows US companies to pay such low tax rates in the UK. Now that Apple is part of the same picture, we are sure that this is going to get a lot more coverage.
Source: The Guardian