Apple agrees to cough up 137 million pounds ($185 million) in extra taxes

Apple companies header
Josh Edelson/Getty Images
After an extensive audit of Apple’s accounts in the U.K. by Her Majesty’s Revenue and Customs (HMRC), Apple has agreed to pay out an extra 137 million British pounds ($185 million), which it describes as a “corporate income tax adjustment.”

This payment covers the years up to September 2015, according to The Guardian, and also includes interest on the unpaid tax. HMRC got Apple Europe, one of the company’s U.K. subsidiaries engaged in marketing and sales for other Apple subsidiaries to agree to the extra charges, after pointing out that it had not received an appropriate commission on sales leads generated for the Irish-based subsidiary. Apple’s European headquarters are in Ireland.

Apple released a statement saying: “We know the important role that tax payments play in society. Apple pays all that we owe according to tax laws and local customs in the countries where we operate. As a multinational business and the largest taxpayer in the world, Apple is regularly audited by tax authorities around the world. HMRC recently concluded a multiyear audit of our U.K. accounts and the settlement we reached with HMRC is reflected in our recently filed accounts.”

The payment came to light after Apple Europe filed accounts on Monday, January 8, that showed a pre-tax profit of 297 million pounds covering the 18 months up to April 1, 2017, and 57 million pounds paid tax, with an additional 137 million British pounds in back taxes. Tax payments from Apple Europe are also set to increase going forward, following this new understanding with HMRC.

It’s not the first time that Apple has fallen foul of the taxman in Europe. A three-year investigation into Ireland’s relationship with Apple found that the company had received too many tax breaks there and it was ordered to pay more than 13 billion euros in back taxes (currently around $15.5 billion). The European Commission rejected an Irish appeal and insisted the tax benefits were illegal under European Union rules because other businesses have had to pay tax at a much higher rate than Apple. Though Apple has reportedly started paying that bill it is still hoping to get the decision overturned.

In recent years, Apple has also been hit with a $118 million fine for underreporting income in Japan and a $348 million fine for tax evasion in Italy. After all the fuss about Apple funneling business from Europe through Irish subsidiaries, the Paradise Papers revealed that it had switched many of them to the island of Jersey, which is a largely self-governing “British Crown Dependency” capable of striking its own tax deals, as a new way to shelter profits.

Apple is the most profitable company in the world with more than $250 billion in the bank.

Emerging Tech

Microsoft’s friendly new A.I wants to figure out what you want — before you ask

Move over Siri and Alexa! Microsoft wants to build a new type of virtual assistant that wants to be your friend. Already making waves in Asia, could this be the future of A.I. BFFs?
Gaming

‘Blockchain gaming’ startup gets $16 million in Series A funding

A gaming startup, Mythical Games, has raised $16 million in Series A funding to work on their concept of blockchain gaming. The aim is for the startup to develop games for the PC, console, and mobile markets.
Apple

iPhone users are finding themselves randomly locked out of their Apple ID

According to posts on Reddit and Twitter, it looks like users on Reddit and Twitter having some issues with their Apple accounts. Specifically, it seems as though users are getting randomly locked out of their Apple IDs.
Gaming

Owners of ROM sites ordered to pay Nintendo more than $12 million

An federal court judge in Arizona has awarded Nintendo more than $12 million in damages in its lawsuit with the owners of two popular ROM websites. The sites must also be transferred to Nintendo's control.
Computing

Over a million veterans now eligible for Comcast’s Internet Essentials program

Comcast's low-cost Internet Essentials program, which provides internet access for just $10 per month, has expanded to include U.S. veterans. One million veterans now qualify for the service.
Mobile

How to use recovery mode to fix your Android phone or tablet

If you’re having a problem you can’t seem to resolve with your Android device, or maybe you want to update it or wipe the cache, recovery mode could be what you’re looking for. Here's how to use it.
Emerging Tech

Awesome Tech You Can’t Buy Yet: A.I. selfie drones, ‘invisible’ wireless chargers

Check out our roundup of the best new crowdfunding projects and product announcements that hit the web this week. You may not be able to buy this stuff yet, but it sure is fun to gawk!
Deals

Cyber Monday 2018: When it takes place and where to find the best deals

Cyber Monday is still a ways off, but it's never too early to start planning ahead. With so many different deals to choose from during one of the biggest shopping holidays of the year, going in with a little know-how makes all the…
Mobile

How to choose the best MicroSD cards for your smartphone or tablet

If you need some extra storage space and your device supports it, then a MicroSD card is an obvious place to start. Here, we look at what to consider and suggest some of the best MicroSD cards for your smartphone.
Mobile

Common Kindle Fire problems, and how to fix them

Is your Amazon tablet giving you grief? Is it refusing to behave the way you expect? Take a deep breath -- everything will be fine. Here are some widely reported Kindle Fire problems and a few possible solutions to go with them.
Mobile

Tumblr for iOS vanishes from App Store, possibly due to inappropriate content

Tumblr for iOS is currently only allowing searches in Safe Mode, and it is not available on the App Store. The speculation is that the app's disappearance had something to do with inappropriate content.
Deals

All the best Target Black Friday deals for 2018

The mega-retailer opens its doors to the most competitive shoppers at 6 p.m. on Thursday, November 22, and signs indicate that the retailer means business this year. We've sifted through all of the deals, from consumer electronics to small…
Mobile

Barnes & Noble’s new Nook tablet now has its own keyboard cover and dock

Barnes & Noble recently launched its largest mobile device to date, the Nook Tablet 10.1. Now the company has released a couple of accessories designed exclusively for the new Nook: A keyboard cover and a charging dock.
Deals

Make some time for the best smartwatch deals for November 2018

Smartwatches make your life easier by sending alerts right on your wrist. Many also provide fitness-tracking features. So if you're ready to take the plunge into wearables and want to save money, read on for the best smartwatch deals.