View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Networks
September 11, 2015

Apple accused of dodging $70m tax in China

Apple Computer Trading (Shanghai) failed to pay over $70m in due taxes.

By CBR Staff Writer

China has accused Apple’s local subsidiary of underpaying $70m in taxes by underwriting some of the costs.

A report from the country’s finance ministry revealed that Apple Computer Trading (Shanghai) failed to pay CNY452m (more than $70m) in due taxes by the end of 2013.

It included maintenance expenses into pre-tax deductions. State-run Xinhua news agency has however reported that the company paid back the taxes and CNY65m in late fees.

The report also accused the company of under-reporting CNY8.8bn of revenue and CNY3.45bn of costs along with CNY5.35bn of profit.

A spokesman for Apple was quoted by Reuters as saying, "During an audit of our 2013 operations, a difference in interpretation of a tax rule resulted in a balance due, which we paid with interest. We pay all the taxes we owe wherever we do business."

Apple’s products enjoy a better market share in China and the Greater China region is the company’s second-largest market after the US.

The company’s iPhone sales have increased 85% in Greater China, which includes Taiwan and Hong Kong.

Content from our partners
How to turn the evidence hackers leave behind against them
Why food manufacturers must pursue greater visibility and agility
How to define an empowered chief data officer

China is currently Apple’s largest overseas market and the base for majority of its manufacturing activities.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU