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Apple Ordered To Pay Massive Tax Fine For Underreporting Income In Japan

Apple Ordered To Pay Massive Tax Fine For Underreporting Income In Japan

Uh oh.

Sian Broderick

Sian Broderick

Apple has been ordered to pay a £89m tax fine for underreporting their income in Japan. The swines.

According to local broadcaster NHK on the day of the launch of the new iPhone, Japan's tax authority argued that the iTunes unit sent parts of its profits (which were earned from fees paid by Japanese subscribers) to another Apple unit based in Ireland.

However, that unit had not been paying a withholding tax on the earnings in Japan. You following?

The tech giant seems to be having a bit of a nightmare at the minute. Just a few weeks ago the company was hit with a £11bn tax penalty from the European Union after a court ruled its 25-year "sweetheart deal" with Ireland was illegal.

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Credit: PA

Commissioner Margrethe Vestager, in charge of competition policy, said: "Member States cannot give tax benefits to selected companies - this is illegal under EU state aid rules. The commission's investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years.

"In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of one percent on its European profits in 2003 down to 0.005 percent in 2014."

This isn't great news on the same day as the launch of the new iPhone, which has been met by a pretty meh reception around the world - including this 'grand' opening in Denmark.

Video Credit: TVMidtVest.DK

According to International Business Times in regards to Apple's fine, the tech giant claimed that it misinterpreted a Chinese tax law which resulted in wrong payments of taxes.

Featured image credit: PA

Featured Image Credit:

Topics: Japan, Apple, iPhone