Apple Retail UK has filed its accounts with Companies House, and the figures are kind of vexing.
The company enjoyed year-end sales of £1.37bn (yes, billion), of which £337m was pure profit, reports i News. However, after costs and expenses, the company said it really only made £39m in pre-tax profit and thus should only have to pay £6.2m tax on those sales. Which, again, were OVER A BILLION.
We might also add that Apple globally is worth more than £1.3 trillion.
The same accounts show that Apple UK paid two international directors of its US arm a total dividend of £25m. Michael Boyd, director of global treasury operations, and Peter Denwood, director of corporate law, apparently shared a pot several times larger than Her Majesty's Revenue and Customs (HMRC) received from the firm last year.
Pff, they would only have spent it on hospitals and schools anyway.
This is far from the first time Apple's tax structure has caused consternation: the company finds out next week if it's been successful in fighting £11.5bn of back taxes the EU says it owes Ireland, it's been asked to pay considerably more UK tax in the past, it successfully dodged $50m of tax in the US, and so on.
Like many US tech companies, Apple uses a tax law that allows it to funnel sales through offices in Luxembourg and other less-costly locations, which is how it's ended up paying so little in tax despite its gargantuan sales figures.
Maybe neglecting to include a charger or EarPods with the iPhone 12 will save it enough money to pay a reasonable amount of tax this year? Ha ha, yeah right. [i News]