Canberra wants some of Apple’s pie
THE AUSTRALIAN Government has hit out at technology giant Apple, after its local results revealed it slashed its tax bill to A$40 million ($50m), despite boosting revenue to A$6 billion.
The figures covering Apple’s local results during financial year 2012 were submitted to the Australian Securities and Investment Commission late last week.
According to the filing, Apple increased its revenues from A$4.9b in its 2011 financial year to A$6b in 2012. But it claimed net profits fell to A$58.5m in the same period, resulting in a tax bill of A$40m.
By comparison, Australian retail chain Harvey Norman earned less in revenue (A$1.4b) while paying more in taxes (A$51m) over the same period.
The local figures come as politicians and tax authorities investigate ways to stop large tech companies from shipping overseas profits made in Australia using complex tax arrangements. These transfer the profits made in Australia to countries such as Ireland or Luxembourg that have lower levels of taxation.
Niv Tadmore, a partner in law firm Clayton Utz, is a member of the government task force investigating how companies minimise their tax. He said it was important to note that they were not doing anything illegal.
‘‘The taxation base is being eroded by ecommerce and internet trade,’’ he said. ‘‘What they’re doing may be 100 per cent fine under current laws, but the question governments are asking themselves is whether they should change the laws to capture more [tax].
‘‘The best approach would be a consistent and co-ordinated approach by international governments . . . but historically agreement with more than two countries is difficult.’’
Labor politician Ed Husic, who is also a member of a parliamentary inquiry investigating alleged price gouging by tech companies, hit out at the results. Total Australian taxes paid in the 2012 financial year by Apple and Harvey Norman
APPLE Revenue: Net profit: Tax paid: HARVEY NORMAN Revenue: Net profit: Tax paid:
A$5.99b A$58.59m A$40.12m A$1.41b A$176.31m A$51.09m
‘‘It’s simply staggering to see Apple make more money but manage to pay less tax in Australia,’’ he said.
‘‘When you consider the massive overcharging that has occurred with some of their