Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Apple’s NZ unit paid tax of just 0.4% of its $571M sales

Apple’s NZ unit paid tax amounting to 0.4% of its half-billion sales in 2012

By Kristen Paterson

March 22 (BusinessDesk) - Apple Sales New Zealand, the local unit of the iPad and iPod maker, posted a 38 percent jump in full-year sales to $571 million, though the tax department received a payment amounting to just 0.4 percent of that.

Apple’s New Zealand sales topped the half billion dollar mark in 2012 after rising to $414 million in 2011, according to its financial results for the 12 months ended Sept. 29.

The local unit of the world’s biggest tech company recorded a tax paid profit of $5.5 million in the year, down 40 percent from its 2011 earnings. Income tax fell to $2.5 million, amounting to 31 percent of pretax earnings, from $5.1 million a year earlier.

Multinationals like Apple, Facebook, Starbucks and Google have come in for criticism for structuring their global businesses to minimise tax payments. The New York Times last year named Apple as the inventor of the “Double Irish With a Dutch Sandwich” a term coined to describe a practise of reducing taxes by routing profits through Irish subsidiaries then the Netherlands and finally Caribbean tax havens.

While the structures are technically legal, the huge reduction in tax owed prompted the Organisation for Economic Cooperation and Development to call for a worldwide crackdown on that kind of behaviour. It released a report into tax avoidance in February urging countries to work together to beat tax avoidance.

Revenue Minister Peter Dunne said last month that New Zealand will strongly align with OECD measures in tackling the issue of fairly taxing multi-nationals.

The Inland Revenue Department and Treasury released a report on taxation and multinationals in December.

“On a general level, companies like Apple are the kinds of companies both the IRD and the OECD are thinking of with these reports,” said Geof Nightingale, a partner at PwC in New Zealand. Taxation for multinationals has become very complicated, he added.

Apple NZ’s 2012 accounts show the vast bulk of revenue went back to other parties in the Apple group to pay for inventory. Purchases of products from within the group amounted to $551.7 million last year, amounting to 97 percent of the local unit’s sales.

Apple’s Australian spokeswoman Fiona Martin said the company doesn’t comment on its operating performance.

(Businessdesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news