Apple being the world’s largest and most successful technological giant often gets into different kinds of financial troubles. Given the global spread of its activities, the company has a pleasure of enjoying certain tax havens and transfer pricing and thus irritates certain national authorities. In France, for instance, the company was alleged to repay an undeclared amount of backdated taxes amounting to 500 million euros. How come?
One of the most marvelous features of international corporations is the freedom that you actually have when dealing with financial issues. Given the differences in legislation and local laws, companies often use these to their own benefit, little wonder why. Corporations with wise enough financial managers could find numerous loopholes and use them to the company’s benefit. However, it is not only about pragmatic companies but also local regulations such as low tax-burden and ease of doing business that some countries offer.
Apple In France: All You Need To Know
Just recently last year, Apple opened its new European headquarters in the very heart of Paris, on 114 Avenue des Champs-Élysées. It did not take long, though, for the auditing firms and French authorities to find out that a company owes something to the Fifth Republic. Below we have prepared a more detailed overview of what actually happened and how this issue was successfully solved. Stay tuned!
Here is all you need to know on Apple’s tax case in France:
- auditors are doing their job: auditing is an extremely important part of activities when it comes to assessing internal conduct of the organization as well as checking how it handles the state’s requirements. Therefore, when the company was checked, it appeared that there were some sums of money it did not even declare to be taxed. Whether intentionally or unintentionally, this remains a mystery;
- undeclared backdated taxes: all in all, the company owes almost 500 million euros to the French authorities, according to media. Even though tech-giant has agreed to pay back, the sum of the repayment has not been disclosed yet;
- it is all about the legislation: European authorities are currently trying to seek an arrangement that would equal the tax field for all of the digital giants in Europe including Google, Amazon, Facebook, and Apple itself. So far, however, with varying tax rates, companies will continue exploiting the differences to their own advantages.
Ultimately, Apple repays the owned sum in the shortest time. However, does it mean that things like this will not happen anymore in the future? Time will show.