Apple under pressure following tax avoidance reports in New Zealand
US tech giant Apple is facing further scrutiny surrounding its tax practices after reports that it has not paid any tax in New Zealand for the last decade.
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Apple was ordered to pay the Irish state up to €13bn in previously unpaid taxes, after ruling that the US company benefitted from a favourable tax rate between 2003 and 2014. The European Commission’s Margrethe Vestager led the investigation into Apple’s tax behaviour in Ireland, but both the company and the state have launched an appeal against the decision with EU authorities.
The New Zealand publication alleges that Apple has posted sales of $4.2bn since 2007 on its products in the country, but Tim Cook’s company denied that the practice is illegal.
"Apple is the largest taxpayer in the world and we appreciate and respect the role taxes play as necessary and important in our society," the company said in a statement.
"We follow the law and pay tax on everything we earn, wherever we operate. Apple aims to be a force for good and we're proud of the contributions we've made in New Zealand over the past decade."
Australia's tax rate is some 30% higher than that of New Zealand's, leading tax experts to question the reasoning behind Apple's shifting of its tax obligations.
New Zealand Green Party co-leader James Shaw criticised Apple's behaviour, telling the NZ Herald it was "absolutely extraordinary that they are able to get away with paying zero tax in this country."