Apple paid no UK corporation tax in 2012
Published 01/07/2013 | 10:25
Apple paid no UK corporation tax last year, filings show, despite all of its main British subsidiaries posting multi-million pound profits.
The US technology giant used tax deductions from share awards to employees to help wipe out the corporation tax liabilities of its UK businesses.
Accounts filed by one of Apple’s two main UK divisions, Apple Retail UK Ltd, showed the company made a pre-tax profit of £16m on sales of almost £1bn in the year to September 29.
Another subsidiary, Apple (UK) Ltd, made a pre-tax profit of £43.8m on sales of £93m, according to accounts filed at Companies House, while a third, Apple Europe, made a pre-tax profit of £8m.
However, the company offset tax deductions relating to share schemes of £27.7m against its corporation tax liabilities in the UK. The move also enabled it to claim a tax credit of £3.8m to carry forward to future years. Experts have also suggested Apple’s total sales in the UK are far higher, as many are logged elsewhere.
In May, US senator Carl Levin accused Apple of of using "a complex web of offshore entities" to avoid paying taxes that equated to more than $1m (£657,000) per hour in lost revenue to the US.
Tim Cook insisted that Apple, which has not acted illegally, paid "all the taxes we owe - every single dollar". Mr Cook said the company paid more than $6bn in tax last year.
“We don’t depend on tax gimmicks,” Mr Cook told the Senate committee. “We don’t stash money on some Caribbean island.