Apple is facing court controversies and reports say that the company has not paid and tax in New Zealand since a decade. But, it has sold iPhone and iPads worth billions of dollars in the nation during this period.
According to the New Zealand Herald, inspite of selling products worth $4.2 billion, Apple NZ did not pay a single dollar worth of tax to the Inland Revenue Department of the country since the year 2007.
Apple’s Tax Equivocation
Apple Sales New Zealand’s financial statements were stated in the report and it says that the company paid $37 million in income tax. Nevertheless, this amount of tax was paid by the company to the similar tax office in Australia, but not in New Zealand.
Apple has faced several tax-related issues on various occasions and it often goes through inspections for its tradition of tax avoidance. The Australian Taxation Office (ATO) audited the company and raised the amount of tax Apple was supposed to pay in Australia between 2014 to 2015.
According to the Corporate Tax Transparency report of the ATO in 2014-2015, the amount of taxes paid by the company is AU$146 million, which is almost double of what it paid in 2013. In 2013, Apple had paid AU$72 million as taxes.
Apple’s market in New Zealand
Apple has a big market in New Zealand, basically for its top-notch iPhones. As per the report compiled by industry analysts IDC, in three months to December 2016, Apple sold 221,000 smartphones in the country.
Since past years, the continuous growth of Apple has made it the world’s biggest and most successful company. According to the financial report for the company’s local supplementary, Apple Sales New Zealand, the total sales estimates of the country since 2007 is $4.2 billion.
In a report, Apple stated that it truly obeyed the law. But the company did not say anything directly about its New Zealand issue and insufficiency of tax payment to Inland Revenue.
The products and services released by Apple are basically from the U.S., hence the company pays major tax in that country, says the spokesperson.