Advertisement

Japan orders Apple to pay $118m fine

by Todd Haselton | September 16, 2016

ginza

Apple has been reportedly ordered to pay a $118 million fine in Japan after its local iTunes business failed to properly report income taxes, Independent said on Friday.

Apple has battled similar charges from the European Union, most recently coughing up $14.5 billion for its tax business practices in Ireland. In that case, Apple’s profits in Ireland were taxed around 0.005 percent instead of the standard 12.5 percent corporate tax rate.

Similarly, Independent said that the Apple unit in Japan had to “send part of its profits, earned from fees paid by Japanese subscribers, to another Apple unit based in Ireland.”One might presume Apple probably knew it was going to pay a lower tax rate given its “sweetheart deal” tax rate with the Irish government, and so the company shuffled the profits over there.

Apple CEO Tim Cook believes the fine in Ireland is purely political and has argued there’s “no basis in fact or in law” for the original charge. Independent said it has settled up with the Tokyo Tax Bureau, though it has appealed the EU’s ruling.

Independent

Advertisement


Todd Haselton

Todd Haselton has been writing professionally since 2006 during his undergraduate days at Lehigh University. He started out as an intern with...Todd Haselton has been writing professionally since 2006 during his undergraduate days at Lehigh University. He started out as an intern with...