Apple’s three main British subsidiaries – Apple (UK), Apple Europe and Apple Retail UK – paid no corporation tax in 2012 despite reporting profits of £68m ($103m), reports the Financial Times.
While share awards to employees are a legitimate tax-deductible expense, questions are likely to be asked about whether the employees were genuinely based in the UK following previous allegations of creative tax-avoidance moves by Apple. Apple had previously been accused of agreeing a special 2 percent corporation tax arrangement in Ireland, an accusation the company denied.
A Senate hearing into Apple’s tax affairs proved rather anti-climatic, with each side simply repeating its previously-stated positions.
Apple is one of a number of global corporations whose international tax affairs have come under scrutiny recently, with Google another notable company to face scrutiny.
