Home » Apple and Other Tech Giants Accused of Tax Evasion in the UK: A $700 Million Scandal

Apple and Other Tech Giants Accused of Tax Evasion in the UK: A $700 Million Scandal

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Apple and Other Tech Giants Accused of Tax Evasion in the UK: A $700 Million Scandal

New Controversy for Apple as Tax Evasion Accusations Surface in the UK

Apple finds itself embroiled in a new controversy, but this time it has nothing to do with its products or services. The tech giant is facing accusations of tax evasion in the United Kingdom, with allegations that they have defrauded a substantial amount from the country’s tax authorities.

The bombshell revelation comes from a report published by Tax Watch, which has caught the attention of Appleinsider, a well-known English-speaking news outlet. The report also implicates other prominent companies, including Amazon, Alphabet, Adobe, Microsoft, Cisco, and Meta, in the alleged tax fraud scheme.

According to Tax Watch’s estimates, Apple should have paid a staggering $863 million in taxes to the United Kingdom in 2021. However, the company’s reported payments only amount to $163 million, leaving a gaping hole of around $700 million in unpaid taxes for a single fiscal year. Despite these damning findings, Apple has remained silent and has not issued an official statement addressing these allegations.

Interestingly, Apple is already embroiled in a tax dispute with the European Union over its taxation practices in Ireland. Now, this new study suggests that the tech giant has also taken advantage of the United Kingdom’s tax policies to further benefit itself.

The study argues that the current tax laws in the United Kingdom, as well as other countries, fail to effectively account for the profits generated by multinational corporations. This discrepancy creates disparities in tax ratios and laws across different jurisdictions where these corporations operate.

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In response to the accusations, the UK Competitions and Markets Authority has conducted its own calculations. They estimate that Apple alone has earned between $12 billion and $18 billion in the country. Appleinsider clarifies that these figures are based on a midpoint estimate.

The total amount owed by the companies on the alleged tax fraudsters’ list to the United Kingdom for the fiscal year 2021 is a staggering $3 billion. Given that there are only seven companies involved, this amount raises significant concerns.

Moreover, this is not the first time Apple has faced scrutiny over its tax practices. In 2020, the company paid a mere $8 million in taxes despite reporting sales of $1.8 billion.

As the news resurfaces, it’s worth revisiting Apple’s statement from 2020, where they proudly claimed their contributions to the United Kingdom exceeded £2 billion. However, the recent revelations about their alleged tax evasion cast doubts on the transparency and accuracy of such declarations.

The growing list of accusations against Apple continues to raise questions about the company’s tax practices and its adherence to ethical standards. Apple may find itself entangled in another legal battle, this time in the United Kingdom, adding to the already complex tax disputes it is facing worldwide.

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