Apple has not paid any income tax in New Zealand for the last ten years, a new report reveals , with the iPhone producer said to have paid out only $37 million from sales generated in the country, paying the due tax to the Australian Tax Office instead of New Zealand’s Inland Revenue.
Completely legally mind you, NZ operated businesses under a parent located in Australia can choose to pay their company income tax in either country.
But where it makes no sense to me, they’re choosing to do so and paying more…
It is noted the accounts calculated the income tax using the statutory rate of 30 percent, not the 28 percent tax rate charged in New Zealand. The higher rate is in fact set by the Australian Tax Office, with the $37 million paid to it instead of New Zealand’s Inland Revenue.
I’m sure there’s a clever accounting trick behind the “why” but dang… poor NZ. That said, $37m short on taxes, they still managed to deploy an FTTP network cheaper and faster than Australia ever will.