Latest financial filings show Apple made only a small tax payment to the UK, and it expects that to be reduced further following subsequent coronavirus costs.
As Apple and other global technology firms face the prospect of new regulations — which Tim Cookhas said he supports — the latest filings show the company is paying little or no tax in the UK. Its filings to September 2019 show a deferred tax requirement of $8m from annual sales of $1.8 billion, but it may not even pay that much.
According to inews, Apple’s annual filing at the UK’s Companies House states that it expects this $8m payment “to be reversed during the next financial period.”
Apple has responded to criticism of its low contribution to the UK’s economy by arguing that it supports the region in other direct ways. “We are very proud of our many contributions across the UK and last year spent over 2 billion [$2.51 billion] with hundreds of suppliers,” said a spokesperson.
“Our investment and innovation supports more than 325,000 jobs in the UK and, in addition to our tax contributions, we also think it’s important to do more for people and society,” continued Apple.
That last point was directed specifically to how the company expects to regain its tax payment because of coronavirus costs since the latest filing. “We focused our attention on supporting the response to Covid-19, making significant financial contributions and donating face masks and shields here in the UK,” said Apple.