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Apple forced to pay 136 million pounds in tax to the U.K.

Sheetal Sukhija - Thursday 11th January, 2018

LONDON, U.K. - An audit conducted by HM Revenue & Customs has forced Apple to pay an additional 136 million pounds in taxes to the U.K. 

According to accounts disclosed on Wednesday, the tech giant’s European arm, would be forced to pay the extra corporate income tax for the years up to 2015.

Apple’s European business provides sales support, financial and marketing services to the company’s other businesses.

Apple said in a statement that the tax demands will be added onto the company’s future tax bills.

According to reports, in the 18 months to April 2017, Apple Europe reported turnover of 656 million pounds with a pre-tax profit of 297 million pounds.

In 2017, Apple's total worldwide turnover was $229 billion.

In documents filed to companies house, Apple wrote that the tax adjustment was made after "an extensive audit" by HRMC.

Further, reports noted that this payout to the U.K. taxman comes amid increasing pressure on U.S. tech firms from European tax offices.

Over the last two years, the European Commission has engaged in a long-running dispute to force the iPhone maker to pay 11.9 billion pounds (13 billion euros) in back taxes to Ireland.

This, despite Ireland resisting the move arguing that its tax arrangement was legal. 

In the most recent development in the case, Apple and Ireland have appealed to the European Court against the ruling.

In October last year, online retail giant Amazon was hit with an order to pay 220 million pounds in taxes to Luxembourg over illegal tax benefits.

In a statement quoted by the Financial Times, Apple said, “We know the important role that tax payments play in society. Apple pays all that we owe according to tax laws and local customs in the countries where we operate.”

The statement added, “As a multinational business and the largest taxpayer in the world, Apple is regularly audited by tax authorities around the world. HMRC recently concluded a multiyear audit of our U.K. accounts and the settlement we reached with HMRC is reflected in our recently filed accounts.”

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