Apple sold $4.2 billion of product in New Zealand, paid $0 local taxes

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A customer in Apple’s store in Auckland, New Zealand, in 2010. A report by a major New Zealand newspaper found Apple hasn’t paid any taxes in New Zealand.

The big technology story in New Zealand this weekend is about Apple’s tax bill. Or rather, the lack thereof.

The electronics giant sold $4.2 billion (NZD) worth of products in New Zealand, but it didn’t pay any local tax at all. That’s according to a Saturday report from the New Zealand Herald. Apple did pay $37 million in income tax based on its New Zealand sales, but it paid that money to the Australian government, since that’s where the New Zealand operation is run from.

The arrangement to send the tax on New Zealand profits to Australia has been in place since at least 2007. Experts confirmed the arrangement is legal under New Zealand law.

“They’re operating completely legally,” said Deborah Russell, a university lecturer who was recently selected to be a candidate in the New Zealand Labour Party. “It’s just that age-hold distinction between legality and morality.”

via Ars Technica http://bit.ly/2otcpNz

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