Apple pays 14.5 million to Treasury in Spain
It was recently known that the two subsidiaries that the technological giant chaired by Tim Cook has in Spain paid last year about 14.5 million euros to the Tax Agency after an inspection of their taxes, as shown in the annual accounts of both companies deposited in the Registry Trade. The investigation took them down.
Specifically, Apple Retail, the company that is responsible for managing the 11 Apple stores in Spain, paid 14,189,561 euros after an inspection on corporate tax, VAT and income tax for non-residents between 2009 and 2012. The company, which invoiced 382.3 million in the fiscal year that ended on September 30, 2017 registered losses of 371,016 euros. All of its purchases are made to Apple Distribution International, the subsidiary based in Cork (Ireland), where taxes are significantly lower.
The other company, Apple Marketing, a wholesale subsidiary that charges commissions for the products that the Irish parent sells to department stores and other establishments in Spain, paid 357,682 euros to the treasury for another inspection on corporate tax. The coup of Finance to Apple is one more evidence of the crusade that European tax institutions maintain against these companies for their aggressive tax strategies. The majority uses subsidiaries that invoice the bulk of their sales to other group companies in Ireland, Luxembourg or the Netherlands, countries with more advantageous taxation. Although it is a legal practice, it is harshly criticized by the EU authorities and leading European politicians.
Spain has already announced a new tax to tax the operations of these technology companies. The Tax Agency has among its objectives these companies for years. Now it has even put online firms in the spotlight. And their strategy against these companies begins to obtain benefits. The blow to Apple is one of the largest that has given Finance to any of the great technology monsters in Spain. The Office of International taxation of the Treasury began to close the fence to these companies three years ago. In this time, it has opened about 189 inspections to large foreign corporations in recent years. In 2016, a group of 35 inspectors stood at the two Google offices in Spain to review their operations and analyze their taxes.
Last year Amazon had to pay 2.2 million to the treasury after other investigations of Finance. Now it's Apple's turn. Last year he paid 14.5 million euros after a thorough inspection of the Agency to the declarations of its main taxes. According to El País, Apple Retail, the subsidiary that manages the Apple Store, feared that the inspection of the Agency could bring consequences. When the tax authorities opened the tax records, a provision was recorded in its accounts - an accounting note to record possible contingencies - of 9.1 million euros, including 1.9 million in possible interest for late payment. After the completion of the inspection, Apple Retail has had to pay 14.1 million (including 2.3 million in interest). In addition, the company has had to eliminate the negative tax bases as a result of the inspection.