Apple pays just 1p in tax for every £1 earned in Britain
Tech giant makes £7.5billion in 10 years – but hands the Treasury just £82million
‘It’s absolutely outrageous’
APPLE has paid barely 1 per cent tax on its UK sales, despite raking in £7.5billion here since the iPhone launched, a Daily Mail investigation has found.
As the tech giant celebrates the gadget’s tenth birthday, analysis showed it has handed the Treasury just £82.1million over the past decade.
The billion- selling iPhone has helped Apple become the biggest company in the world but its rise has been marred by claims it does not pay its fair share of tax.
Last night, critics said Apple’s apparent determination to avoid contributing was a scandal that shamed international business.
Former Lib Dem business secretary Sir Vince Cable said: ‘ It’s absolutely outrageous that the tax base doesn’t reflect economic activity and is based on artificial declarations of profits.
‘Taxation has become voluntary for these companies, and the tax base has got to change.’
George Turner of the Tax Justice Network said: ‘We know Apple is one of the most profitable companies in the world and the UK is a really important market for them.
‘What it shows is that despite this issue being at the top of political agendas for many years now, nothing has really changed.
‘Companies are still managing to act with impunity and move huge amounts of money out of the UK in order to avoid taxes.’
Few governments have been willing to stand up to Apple which, with its market value of £585billion, hits back against claims of avoidance with all the legal firepower at its disposal.
In April, however, European competition authorities ordered Apple to pay £11.4billion in back taxes to the Irish government – ruling its sweetheart deal with Dublin amounted to illegal state aid.
Both Ireland and Apple said they would appeal, with chief executive Tim Cook arguing the decision could put big businesses off investing in Europe. He said: ‘Beyond the obvious targeting of Apple, the most profound and harmful effect of this ruling will be on investment and job creation.’
The company runs two British arms, Apple (UK) Ltd and Apple Retail UK, which have turned over £7.5billion since 2007, according to Companies House accounts.
But the firms reported UK profits of only £482million during that time, on which it has paid taxes of £82.1million. Apple Retail UK alone dealt with £1billion of sales in the year to September, but paid just £13.8million in tax.
The UK’s corporation tax rate currently stands at 19 per cent.
Critics have argued profits are artificially managed down to avoid racking up a high tax bill – something Apple vigorously denies.
Labour MP John Mann, a member of the Treasury select committee during the last Parliament, said: ‘It is time to get tough on these companies – they make a lot from the UK and should pay a proper amount back in.’
Last night, Apple said the firm played an important role in the British economy and supported 300,000 jobs. A spokesman said: ‘As the largest taxpayer in the world, we know that tax payments make an important contribution to society and we pay all that we owe wherever we operate.’