Apple was recently in the news for being a company whose net worth was valued at over 1 trillion dollars. This news did not bring good light to Apple, who has been known for their shoddy business practices.
For instance, they are currently under a lawsuit for their updates, which force users to buy a new phone charger, which is also sold by Apple. So knowing that they have all of this money and net worth, the last thing that you would think is that they would falter on their taxes, right? Well…
Apple has to pay back taxes… again.
“The French tax authority recently concluded a multiyear audit of our French accounts and the adjustment will be reflected in our publicly filed accounts,” Apple said in a statement. “We know the important role tax payments play in society and we pay all that we owe according to tax laws and local customs wherever we operate.”
What they say does not seem to be true, as the French government took over 500 million USD (440 million Euro) in a settlement. This would be around 10 years of back taxes, showing that they did not, in fact, pay all that they owed.
The problem with huge companies and tax breaks
Large companies, like Apple, have been heavily criticized due to not paying what they owe in taxes due to loopholes and tax breaks. For instance, in the US alone, the tax rate for corporations should be 35%, but together, they pay almost half that. 18 companies, such as General Electric, Priceline.com, and PG&E, pay absolutely nothing in federal taxes. And additional 48 companies pay less than 10% in taxes. This is even worse on a state level.
So it is a win for the people when the government forces companies to pay their fair share in taxes. Due to this, France is working to enact a GAFA tax, which refers to Google, Amazon, Facebook, and Apple, respectively. This tax will affect global sales of more than 750 million Euro, and in France alone, 25 Million Euro.
This same battle was fought back in 2016 when Ireland forced Apple to pay 13 billion Euro in back taxes. As more countries work to get all of the money they are owed by these massive corporations, more money will be able to be spent on vital things, such as infrastructure and education. So we should be seeing more of that as time goes on.