Apple fined heavilly in China for tax evasion

[GoodBytes]

Neowin reports that on Thursday, the state-run publication Xinhua News Agency reported that Apple was avoiding taxation in China, by failing to pay 452 million Yuan ($71M USD) in taxes in 2013. In addition, before that China announced a new fine for companies not paying taxes, and gave a fine of $65 million yuan ($10M USD) in addition.

An that is not all, Apple is being accused of inflating its posted profits by 5.4 billion yuan ($846,000,000 USD).

During an audit of our 2013 operations, a difference in interpretation of a tax rule resulted in a balance due, which we paid with interest. We pay all the taxes we owe wherever we do business

The news agency reported.

This move by China is part of a new crack down move on multinational tech companies for failing to pay taxes, a big problem in China.

Source: http://www.neowin.net/news/apple-fined-heavily-for-chinese-tax-evasion

[Lolzious]

They invaded tax? Jeez maybe they are taking over the world

[GoodBytes]

Tax invasion? You mean tax evasion?

Oops, typo! Sorry. Thank!

[CydiaDash]

Yesss... take more of Apple's money >=D

[TheSLSAMG]

-snip-

 

Implying that other companies don't do it.

 

It may come as a surprise to you, but Apple weren't the first (nor will they be the last) to exploit cheap labor and be savvy with their money.

[TheConverter]

Implying that other companies don't do it.

 

It may come as a surprise to you, but Apple weren't the first (nor will they be the last) to exploit cheap labor and be savvy with their money.

Maybe but atleast I'm the one keeping that money in my pocket not Apple. There is no smartphone manufacturer with bigger margins then Apple.

Cheapest S6 is € 474,- now and cheapest Iphone 6 is € 629,-

[.spider.]

10 Million USD fine they won't even notice that.

[6God]

China accusing someone else of tax evasion? 

 

Pot. Kettle. Black? 

No wait, its Space Grey these days. 

 

Implying that other companies don't do it.

 

It may come as a surprise to you, but Apple weren't the first (nor will they be the last) to exploit cheap labor and be savvy with their money.

 

 

Ignore him, he's been on the Anti-Apple nonsense spree the past few days in all the threads. Kinda amusing, how someone can hate something so bad over petty reasons. 

[TheConverter]

10 Million USD fine they won't even notice that.

 

They make that back by selling their 100M planned Iphones for Q3 and Q4

[Trik'Stari]

China accusing someone else of tax evasion? 

 

Pot. Kettle. Black? 

No wait, its Space Grey these days. 

 

 

 

Ignore him, he's been on the Anti-Apple nonsense spree the past few days in all the threads. Kinda amusing, how someone can hate something so bad over petty reasons. 

Apple is not the only company that does it, but they could damned well do something about it, considering how much money they have. But they don't, they continue to exploit it.

[Tech_Dreamer]

They'll sell 10 apple products & be back on the road again like it's nothing

[6God]

Apple is not the only company that does it, but they could damned well do something about it, considering how much money they have. But they don't, they continue to exploit it.

 

Do what about it? Shift production to North America? Yea, they already did it with one product, the product that carries their highest margins, because thats how expensive the shift is to North American or even European production. 

 

I don't think you guys understand how little companies like to pay for increased production costs. They don't. The mandate is to maintain to increase margins, decreasing margins requires one iron clad justification (like when Apple shifted the Mac Pro over to North America). 

 

Furthermore, even Apple couldn't afford the production scale to shift over all their production elsewhere and do it on their own. It is maddeningly expensive. Apple would effectively have to run a small city just to produce everything on their own. 

They could do something, if they wanted to piss away a 50 billion dollars to do it. No one wants to do that. The day they leave is the day China becomes too expensive for them. Thats all it is. Stop acting like Apple can influence anything. Do you think anyone outside of the internet gives a shit that these factories in China exist? Your tech, your TVs, your clothing; no one cares. Lets stop painting one company as the literal devil for being there. 

[Trik'Stari]

Do what about it? Shift production to North America? Yea, they already did it with one product, the product that carries their highest margins, because thats how expensive the shift is to North American or even European production. 

 

I don't think you guys understand how little companies like to pay for increased production costs. They don't. The mandate is to maintain to increase margins, decreasing margins requires one iron clad justification (like when Apple shifted the Mac Pro over to North America). 

 

Furthermore, even Apple couldn't afford the production scale to shift over all their production elsewhere and do it on their own. It is maddeningly expensive. Apple would effectively have to run a small city just to produce everything on their own. 

They could do something, if they wanted to piss away a 50 billion dollars to do it. No one wants to do that. The day they leave is the day China becomes too expensive for them. Thats all it is. Stop acting like Apple can influence anything. Do you think anyone outside of the internet gives a shit that these factories in China exist? Your tech, your TVs, your clothing; no one cares. Lets stop painting one company as the literal devil for being there. 

There's an alternative you know. Create your own factories in China, treat the employees like humans. Yes it will cost money, but at least then they can say they did something.

 

You'll have to forgive me for not accepting pure greed as a reasonable justification for using slave labor. For any company.

[6God]

There's an alternative you know. Create your own factories in China, treat the employees like humans. Yes it will cost money, but at least then they can say they did something.

 

You'll have to forgive me for not accepting pure greed as a reasonable justification for using slave labor. For any company.

 

Welcome to real life where ideals like that don't work and get you nowhere in the corporate game. 

 

Like I already said, they aren't going to pay what it costs to run their own venture. Yea, companies have put a price on human life and decency. Don't tell me you just realized that? 

[Yoinkerman]

Welcome to real life where ideals like that don't work and get you nowhere in the corporate game.

Like I already said, they aren't going to pay what it costs to run their own venture. Yea, companies have put a price on human life and decency. Don't tell me you just realized that?

They can still have cheap China labour and treat the workers like human beings. And still make scads of money.

It isn't one or the other. That it is standard practice to do otherwise speaks volumes about the current industry. Being a common occurrence doesn't make it okay.

One of the reasons I won't buy apple products.

[cesrai]

I would just wait for Apple response to this.

[The Benjamins]

Neowin reports that on Thursday, the state-run publication Xinhua News Agency reported that Apple was avoiding taxation in China, by failing to pay 452 million Yuan ($71M USD) in taxes in 2013. In addition, before that China announced a new fine for companies not paying taxes, and gave a fine of $65 million yuan ($10M USD) in addition.

An that is not all, Apple is being accused of inflating its posted profits by 5.4 billion yuan ($846,000 USD).

The news agency reported.

This move by China is part of a new crack down move on multinational tech companies for failing to pay taxes, a big problem in China.

Source: http://www.neowin.net/news/apple-fined-heavily-for-chinese-tax-evasion

 

5.4 B Yuan is 846M not 846,000

[spartaman64]

Implying that other companies don't do it.

 

It may come as a surprise to you, but Apple weren't the first (nor will they be the last) to exploit cheap labor and be savvy with their money.

but the other companies are not claiming to be moral while apple does

Alt+MAlt+N

[GoodBytes]

5.4 B Yuan is 846M not 846,000

Thanks! Fixed!

[brownninja97]

This is certainly not what i was expecting, its not like they dont have the money to pay for the taxs, wonder what that is about. Im assuming bad leadership in china.

[Puddleuk]

Didn't want to get involved but feel I should post something.

 

Just because something is considered the norm does not make it right. Companies exploiting cheap labour is not acceptable and many companies could do more to give workers better conditions. Now I must admit everyone is probably guilty of owning or buying a product produced in such a way but it's the big corps who are most benefiting.

 

Companies such as Apple who post PROFITS in the BILLIONS. Can and should do more. Saying that its ok because everyone is doing is like saying you are ok with slavery? Is that REALLY what you stand for???

[Dabombinable]

Apple got rekt.

[Thony]

I had no idea china has an actual real Apple stores and not fake ones lol.

[CaptainGazzz]

Didn't want to get involved but feel I should post something.

 

Just because something is considered the norm does not make it right. Companies exploiting cheap labour is not acceptable and many companies could do more to give workers better conditions. Now I must admit everyone is probably guilty of owning or buying a product produced in such a way but it's the big corps who are most benefiting.

 

Companies such as Apple who post PROFITS in the BILLIONS. Can and should do more. Saying that its ok because everyone is doing is like saying you are ok with slavery? Is that REALLY what you stand for???

 

I can guarantee that most of us forget that when buying a device. We always choose the best value product, not caring how it was produced.

[Toddwjp]

Good, more countries need to start making them pay there taxes, the estimated amount of tax avoidance and evasion in the UK adds up to almost 10% of the yearly budget