Apple Pays $118 Million Tax Bill in Japan After Underreporting Profits

[MacRumors]

Apple has paid some 12 billion yen ($118 million) to Japan after underreporting income in the country, according to broadcaster NHK (via Reuters). The company has yet to comment on the matter.

Japanese tax authorities determined that Apple failed to pay withholding taxes on profits it earned from subscribers in Japan and shifted to its Irish subsidiary to pay for software licensing.

The Tokyo Regional Taxation Bureau determined that the unit, which sends part of its profits earned from fees paid by Japan subscribers to another Apple unit in Ireland to pay for software licensing, had not been paying a withholding tax on those earnings in Japan, according to broadcaster NHK.

The news comes just over two weeks after the European Commission ordered Ireland to collect 13 billion euros ($14.5 billion) from Apple in unpaid taxes. The executive body said Apple received illegal state aid from Ireland, allowing it to pay a less than 2 percent tax rate between 2003 and 2014. Apple said it is confident the decision "will be reversed," and Ireland has also vowed to appeal.

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Article Link: Apple Pays $118 Million Tax Bill in Japan After Underreporting Profits

 

[Bawstun]

Sad! Pay your dues, Apple. And fix touch disease (for free) on any 6/6s device that develops it. Greedy greedy greedy.

 

[vooke]

Apple has blurred the line between evasion and avoidance and in its place churned out underwhelming 'innovations'

 

[japanime]

Apple has paid some 12 million yen ($118 million) to Japan after underreporting income in the country

12 million yen does NOT equal $118 million USD.

 

[TechZeke]

How is 12 Million yen worth $118 Million USD?

Am I missing something?

 

[garirry]

Um, 12 million Yen is like 1.2 million dollars... unless you mean 12 billion Yen.

 

[TechZeke]

Um, 12 million Yen is like 1.2 million dollars... unless you mean 12 billion Yen.

Actually, less than that. Less than $118,000. Sounds like the person who wrote the article misread the number of zeroes.

 

[tenton]

Actually, less than that. Less than $118,000. Sounds like the person who wrote the article misread the number of zeroes.

Looks like like they couldn't read the Reuters article properly (which says 12 billion yen, $118 million) and wrote million for both amounts.

 

[garirry]

Actually, less than that. Less than $118,000. Sounds like the person who wrote the article misread the number of zeroes.

Yeah, whoops, can't count at 2 AM :| A Yen is usually roughly 1/100 of a dollar so that would be like $120k. Which is nothing for Apple, lol. 12 billion does equal to roughly $118 million however so I guess they just wrote million instead of billion.

 

[T'hain Esh Kelch]

Seems like Cook don't want to admit defeat publicly.

 

[racingbull]

Oooops, they did it again.



Pay your dues how we all do. This is eroding Apple's image which is no good. Greedy.

 

[ddkkpp]

This is an obvious pattern of behaviour for Apple.

They should own up to their deceptions and just pay the piper.

 

[macfacts]

It's legal till you get caught.

 

[Nr123*123]

Spending too much time avoiding tax and too little time actually making products.

 

[smacrumon]

I have a love and hate for Apple. This aspect of how Apple runs its business is what I hate about Apple. Pay your damn taxation bills fully and properly, Apple. Stop dodging taxes worldwide. Pay your bills dirty, filthy, underhanded, Apple! iMessage sticker says greedy pigs.

​

 

[justiny]

This is an obvious pattern of behaviour for Apple.

They should own up to their deceptions and just pay the piper.

Or Apple will simply open a dozen more Apple Stores in Japan to cash in more revenue.

Deceptions or not, does it really matter?

 

[Scottsoapbox]

I completely support Apple avoiding as much taxation as legally possible (no it is not a moral issue). But keep it legal Apple. Using loopholes created by the very politicians that cry foul? Go for it! Undereporting your actual profits? Ah no.

 

[kildraik]

Hot water! They need to straighten up or that cash reserve will go quickly...

 

[Bubba Satori]

Apple should just buy Japan.
Stay tuned.

 

[Pilgrim1099]

I think Tim Cook and his financial cronies should go to jail for this kind of thing. Seriously. The longer he stays in Apple, the more they will continue with this behavior. I think the reason they under-report is because many of their projects, even the HQ have been extraordinarily expensive to maintain that they're not willing to use their cash reserves to be tapped in. This attitude and behavior is what will destroy or run this company to the ground if it continues.

 

[now i see it]

Apple's new logo.

 

[macintoshmac]

Well, to be fair, Tim never said he plays it straight around the the world. All he ever said was "Apple pays every tax dollar they owe." Not Yen. Or any other currency.

 

[KidAKidB]

How is 12 Million yen worth $118 Million USD?

Am I missing something?

$12 billion...

 

[thermodynamic]

The most profitable and valuable company needed state aid?! You know, the stuff that unemployed and underemployed people have to take because work is not valued but the workers are called "leeches" and other nasty things? From another country that though they were-- what was Ireland thinking to begin with?

Either way, it's sad.

Especially as the uberlord and noble elite master Steve Jobs hand picked his replacement. Oh, wait, Jobs was no angel on that issue either.

And nobody mention what The Woz said about how much in tax Apple should pay, certain heads would go all 'splodey like from that movie "Scanners".