When Tim Cook called accusations that Apple dodges taxes in some countries “total political crap” it’s fair to say a few eyebrows were raised in some nations around the world.
Despite funneling its European profits through Ireland in order to benefit from lower tax rates, Cook was adamant “Apple pays every tax dollar we owe.”
Apparently that wasn’t the case in Italy, where the company has today agreed to pay a whopping $347 million (around £234m) in back taxes.
The payments will come following an investigation into suspected tax fraud. For the period between 2008 and 2013, Apple Italia was alleged to have failed to declare its earnings.
See also: Apple TV (2015) review
A Guardian report outlines that Ireland’s corporation tax is only 12.5 per cent, while the Italian tax agency charges 27.5 per cent. The differing national policies make it far more advantageous for companies like Apple and Facebook to declare their European earnings in Ireland.
Apple has not commented on the reports, but the Italian tax office has confirmed a report from the Italian newspaper La Repubblica over the payments Apple must make.
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Editorial independence
Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
