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Apple faces scrutiny after reports suggest it “paid no tax” in New Zealand

23rd Mar 17 10:05 am

This is what happened…

Apple is in the lime light for the wrong reasons, this is due to reports suggesting the firm paid no tax in New Zealand for at least a decade.

The New Zealand Herald newspaper found that Apple’s local unit paid around NZ$37m ($3bn; £2bn) in taxes in Australia instead.

Apple’s New Zealand parent company is currently registered in Australia, the two countries have an agreement where tax is only paid in one jurisdiction.

Apple defended itself and said the arrangement is legal.

The tech giant said: “Apple is the largest taxpayer in the world and we appreciate and respect the role taxes play as necessary and important in our society,”

“We follow the law and pay tax on everything we earn, wherever we operate. Apple aims to be a force for good and we’re proud of the contributions we’ve made in New Zealand over the past decade.”

Some tax experts have said the arrangement is unusual as Australia’s corporate tax rate is 30 per cent higher than New Zealand’s.

New Zealand Green Party co-leader James Shaw, told the NZ Herald: “It is absolutely extraordinary that they are able to get away with paying zero tax in this country,”

The revenue minister for New Zealand, Judith Collins has spoke of making plans to strengthen tax laws.

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