Tuesday , January 16 2018
Breaking News
Home / International Customs / Ireland / Apple forced to pay £136m tax bill in the UK following ‘extensive audit’
Apple forced to pay £136m tax bill in the UK following ‘extensive audit’

Apple forced to pay £136m tax bill in the UK following ‘extensive audit’

DUBLIN: Apple’s tax struggles in Europe have been well documented in the past, and now an extensive audit has forced the company to pay an additional tax bill. As reported by The Financial Times, Apple is being forced to pay an extra £136 million tax bill in the U.K.

The added tax comes following “an extensive audit” by HM Revenue and Customs, which is the department of the UK government responsible for the collection of taxes. The department reports that “this payment of additional tax and interest reflects the company’s increased activity.”

The tax bill is specifically targeted at Apple Europe, which provides various support, marketing, financial, and administrative services to “other group companies.”

HRMC’s audit purportedly found that Apple Europe was not paid a fair value for services it offered to other Apple subsidiaries, thus creating an artificially lower taxable income. Apple’s payment covers several years all the way up to 2015.

Apple Europe employs some 791 people and, according to the Financial Times, it reaped pre-tax profit of £297m in the 18 months leading up toto April 2017. The company’s total tax bill was £192m.