How much UK corporation tax should a company reporting £2bn of turnover be paying? Moreover a company that regular reports profit margins above 40%?
If you guessed £12.9m you’d be about right, because that’s the amount of UK tax Apple pays on those phenonmenal UK sales numbers. Based on income and stated profit margin that number should actually be up somewhere around £160m, which means the Chancellor of the Exchequer has a $150m hole in his finances.
Not a great deal in the grander scheme of things, spread that over the many US businesses using tax loopholes to avoid UK tax and it starts to look like something much more interesting.
The EU is currently examining Apple’s tax deal with the Republic of Ireland and is allegedly on the hook for around £8bn of back taxes if the agreement is found to be outside of EU law.
Which would be a bonus for the Irish Government, but less so for the UK, EU countries and of course Apple.
Although as far as tax wins go, it seems to me that Apple has had more than its fair share thus far.