Daily Management Review

France demands that Apple pay € 400 million in taxes


11/24/2016


The French tax administration demanded that French division of Apple return € 400 million to the state budget, writes L'Express magazine, citing informed sources.



Photo: Alvy / Microsiervos
Photo: Alvy / Microsiervos
The watchdog found that the company has unlawfully used tax laws in France. This, according to the authorities, allowed Apple France to hide large sums of tax, said the publication. The investigation was mentioned in the case file, found in trade court at Bercy (Paris).

In the period from 2011 to 2013, the company "took into account only a small part of funds from sale of iPhone, iPad and the MacBook, placed at shops of mobile operators," according to the magazine. The main part of the proceeds settled on accounts of Apple Irish division, where the company enjoys tax benefits. French subsidiary of Apple has been registered there.

Apple considers practice of reducing the tax burden through offices in Ireland legitimate. The Bercy Court holds the opposite point of view. Apple is ranked first among American companies by volume of assets hidden from taxes in 2015, said study of U. S. PIRG Education Fund. According to some estimates, the amount could reach $ 65.08 billion.

Fortune 500 companies have trillions of dollars in profits hidden from tax authorities in offshores, the study said. 73% of companies in this ranking have subsidiaries in offshore zones. If each of these companies paid taxes on the sheltered income, then the US would have received $ 717.8 billion, experts estimated. For comparison, deficit of the US federal budget in 2015 reached $ 438 billion.

At that, Apple was recognized the first tax dodger by volume of assets hidden from taxes. Another corporation, which placed considerable sums in offshore, is financial services company Citigroup. The authors claim that amount of these funds is $ 45 billion. Thus, the American budget let slip $ 12.7 billion in taxes. As for others, there are Pfizer ($ 193 billion), PepsiCo ($ 40 billion), Google ($ 58 billion) The authors also mention Nike and Goldman Sachs companies, which transferred a significant part of the previous year’s profit in an offshore.

Researchers said the Netherlands were the most popular tax havens for US companies. More than half of the studied companies have subsidiaries there. The country is followed by the Cayman Islands and Bermuda - 58% of companies have divisions in these jurisdictions.

Back in the 2013, the US Senate began an investigation against Apple. Then, the corporation was accused of reducing amount of tax payments around the world by tens of billions of dollars through certain subsidiaries in Ireland.

At the end of August 2016, the European antitrust regulator decided that the Irish government illegally granted Apple with tax benefits in amount of € 13 billion, and ordered the company to reimburse the funds.

source: lexpress.fr






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