The French authorities accused Apple of evading tax due on sales over the last 10 years.
Apple has reportedly reached a deal where it will pay a sizable $571 million to France as a back tax. Despite its increasing sales, the company paid less taxes over the last 10 years.
Apple has confirmed that it has reached an agreement to pay the amount but hasn’t specified as to how much it will be paying.
“As a multinational company, Apple is regularly audited by fiscal authorities around the world,” Apple France said in a statement to Reuters. “The French tax administration recently concluded a multi-year audit on the company’s French accounts, and those details will be published in our public accounts.”
In a report by French outlet L’Express, it is reported that the agreement was made last December. French authority was interested particularly in the low revenue reported by Apple over the last 10 years, hence the low tax paid.
This is not the first time that Apple has had to pay such a hefty amount as a back-taxed bill. Back in November, the European Union hit Apple with $15.3 billion back tax amount. Apple was ordered to pay the amount to the Irish Government, saying the company was provided with ‘illegal tax benefits’.
Back in February 2018 Amazon paid 200 million euro ($249 million) in back taxes. In 2017, France asked Google to pay a 1.12 billion euro ($1.28 billion) tax bill, but Google’s Irish subsidiary was not deemed taxable in France by an EU tribunal. So Apple is not the only company to have tax beef with France.
France tried to push through an EU-wide digital tax system on GAFAM (Google, Apple, Facebook, Amazon and Microsoft) but was unsuccessful as countries like Germany, Ireland and Sweden opposed the system. For that reason, France passed legislation to impose its own digital tax on GAFAM starting in 2019 back in December 2018.