Jessica Fino 10 Jan 2018 12:44pm

Apple pays UK £136m in back taxes

Apple has paid an extra £136m in taxes to the UK following an “extensive audit” by HMRC

The latest accounts for Apple Europe show that the multinational’s Europe subsidiary paid £57.45m in UK corporation tax for the period ended in April 2017, plus £136.98m in adjusted taxes covering prior years up to September 2015.

The company said in its accounts, “This payment of additional tax and interest reflects the company’s increased activity […] and as a result of this adjustment the company’s corporate income tax payments will increase going forward.”

According to the Financial Times, the Revenue argued that the subsidiary had not received a large enough commission on sales it helped secure through its marketing services.

An HMRC spokesperson said, “Multinational companies must pay all taxes due and we don’t settle for less.”

A spokesperson for Apple pointed out that the company is regularly audited by tax authorities around the world and “pays all that we owe according to tax laws and local customs in the countries where we operate.”

“HMRC recently concluded a multiyear audit of our UK accounts and the settlement we reached […] is reflected in our recently filed accounts.”

The technology giant has in recent years been criticised for alleged tax avoidance and previously been ordered to pay back taxes in several countries. In 2016 the European Commission ruled that Apple was granted illegal state aid in Ireland and demanded it repay €13bn.

Apple has missed the payment deadline, and the EC said it would refer Ireland to the ECJ for late collection of the alleged State aid. In November last year, Ireland hinted it would make progress in recouping the taxes from the multinational.

Apple has also recently been accused of moving parts of it business to Jersey solely for tax purposes. The release of the ‘Paradise Papers’ showed how the company moved two of its Irish subsidiaries, including one holding most of its $252bn (£192.20bn) untaxed earnings, to the island.