Apple, Google Reject ATO’s Tax Avoidance Claims
Apple Australia follows Australian transfer pricing law and pays all of its taxes due in the Australian market in accordance with the law, Tony King, the Managing Director of Apple Australia, told the Senate Inquiry on corporate tax avoidance and minimization on April 8, 2015.
In his opening remarks before the Economics References Committee, King attempted to dispel myths about the company’s tax avoidance strategies, stating: “Apple’s product design, development, and manufacturing all take place outside of Australia. All of the sales from our operations are included in Apple Australia’s accounts. Apple Australia buys the products we sell here and we pay Australian tax on the profit on these sales.”
King added: “We are transparent and open with the Australian Tax Office and have worked through its advance pricing agreement program since its inception to determine how to confirm the prices on the products we buy from affiliates outside of Australia. These agreements are reviewed regularly in line with normal tax office procedures to ensure Apple Australia is in compliance with all of its Australian tax obligations.”
King was joined by the Managing Director of Google Australia, Maile Carnegie, who said that the company does not pay more corporation taxes in Australia because “like many other multinational corporations, whether they are digital or otherwise, we pay the lion’s share of our taxes to the country where our headquarters is based.”
Carnegie added: “We support reform to make our current system simpler and more transparent, but we do not believe that unilateral action by an individual country that basically puts at risk our tax treaties with other nations is the right solution. It will add more complexity and more uncertainty and will lead to less innovation and less growth and job creation. It is why Google believes international cooperation at the OECD level is essential.”
On October 2, 2014, the Senate referred an inquiry to the Committee into tax avoidance and aggressive minimization by corporations registered and operating in Australia. The findings of the inquiry are to be presented to the Senate at its first sitting day in June 2015.
