In its submission to the parliamentary inquiry into corporate tax avoidance, Apple has revealed it has sought to renew its advanced pricing agreement (APA), related to how it is taxed and which has now expired, with the Australian Tax Office (ATO), stating it “complies fully with its Australian tax obligations”.In its submission Apple stated it continues to remain willing to enter into a further APA.
“Apple supports the use of APAs and has had a long-standing, open and cooperative relationship with the ATO that began with the ATO and Apple entering into an APA in the early 1990s,” Apple stated.
“Unfortunately, despite the company’s efforts to renew, APL’s APA has expired, but, APL was and remains willing to enter into a further APA with the ATO for future years.”
Apple Australia paid $80.3 million in income tax in its latest financial year, with revenue of $6.07 billion, it was recently disclosed in Apple’s report to the Australian Securities and Investments Commission.
In its submission, Apple further stated APAs “provide an effective means for achieving transparency between tax administrations and taxpayers”.
With regard to public disclosure, Apple added that any policies “need to take into consideration a range of issues”, such as “commercially sensitive information (eg trade and operational secrets), compliance costs, and the potential for the information which is disclosed to be misunderstood or misconstrued”.
Apple stated transparency must go both directions and be based upon measures reflected in the Organisation of Economic Cooperation and Development’s Base Erosion and Profit Shifting (BEPS) guidance.
“We recommend that Australia continue to actively participate in the BEPS process, support gaining consensus amongst the countries involved in the BEPS projects, and avoid unilateral action,” Apple stated.
