Apple’s Volume Purchase Program for apps coming soon to 16 new countries

Volume-Purchase-Program

Apple is about to roll out its Volume Purchase Program, which allows business and education customers to purchase and distribute iOS apps in bulk for deployed devices, into 16 new countries. Apple’s website for both the Volume Purchase Program for Business and for Education have been updated to announce the expansion and now list the following countries as coming soon to the program: Read more

Apple Australia hit with $28.5M in back taxes after questionable use of tax havens

Days after executives from Google, Amazon, and others were grilled by regulators in the United Kingdom over the issue of tax avoidance in Europe, The Sydney Morning Herald reported today that Apple’s Australian arm has been hit with a $28.5 million bill for back taxes in the country:

APPLE AUSTRALIA has been hit with a $28.5 million bill for back taxes, statements lodged with the corporate regulator in April show… News of the Tax Office bill comes as European governments put global technology companies under intense pressure over their complex ownership structures that rely heavily on a network of tax havens… Apple’s Australian arm reaped $4.9 billion in revenue last year through the sale of its computers, iPads and iPhones. The bill takes its total tax tab for the year ending September 24, 2011, to $94.7 million.

Earlier this year, The New York Times profiled how Apple uses tax havens, such as Nevada, Ireland, and Luxembourg, to sidestep taxes in both the United States and Europe. The U.K. isn’t the only country putting pressure on technology multinationals over tax avoidance schemes, SMH also noted the French government requested $252 million USD in back taxes from Amazon, a company that also uses Luxembourg as a tax haven for its Europe operations, earlier this week. Read more

Don’t hate the player, hate the game -NYTimes’ ‘How Apple Sidesteps Billions in Taxes’

The New York Times delves into a divisive subject in American politics right now: Tax avoidance. Apple, like most international companies, sidesteps many California, United States, European, etc., taxes by using tax havens like Nevada, Ireland, Luxembourg, and the Virgin Islands.

The problem for the protagonists is that this is all very legal and practiced by just about every multi-national company in the interest of remaining competitive and maximizing stockholder share. Like most matters of this sort, the problem lies with the laws and loopholes that allow this to happen. Big companies spend a lot of money on lobbyists making sure that those loopholes do not get closed.

What may not be terribly patriotic are Apple, Google, Cisco, and other’s lobbying efforts against paying U.S. taxes on repatriating their overseas earnings. Apple currently has $74 billion overseas and a “tax holiday” on bringing that money and over $1 trillion from other companies back into the U.S. could cost the U.S. federal government $79B, according to the report. (Great Graphic at Bloomberg on why the $1 trillion holiday is likely going to happen.)

Apple responded to the NYT below:

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