Apparently Apple paid zero taxes in New Zealand for a decade

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Apple doesn’t appear to pay tax in New Zealand .

Image: Rick Rycroft/ AP/ REX/ Shutterstock

Why is Silicon Valley so cruel to New Zealand? First we discover PayPal founder and Trump acolyte Peter Thiel is a secret citizen , now it’s emerged Apple pays the country absolutely nothing in taxes.

Apparently the tech monster paid no income taxation on local gains to Inland Revenue over the past 10 years, because its local operations are owned and run out of Australia.

According to fiscal records examined by the New Zealand Herald , this was despite Apple Sales New Zealand building sales of NZ $4.2 billion ($ 2.96 billion) since 2007.

Matt Nippert( the same correspondent who uncovered Thiel’s citizenship ), determined the income taxation owed to New Zealand was instead sent to the Australian Tax Office.

Apple’s Australian branch said the company follows the law and pays taxation on everything it earns.

“Apple aims to be a army for good and we’re proud of the contributions we’ve built in New Zealand over the past decade, ” a spokesperson said in a statement. “Because our products and services are created, designed and engineered in the US, that’s where the vast majority of our taxation is paid.”

The New Zealand revelation is only the latest disagreement caused by Apple’s byzantine tax structures around the world.

In August, the European Commission ruled Apple should pay 13 billion ($ 14 billion) in retroactive taxes to Ireland. The investigation determined Ireland had contravened EU law by devoting Apple “illegal” tax benefits unavailable to other corporations.

Apple CEO Tim Cook reacted angrily at the time, writing in a letter to patrons that the European Commission was trying to “rewrite Apple’s history in Europe.”

“The most profound and harmful effect of this ruling will be on investment and job creation in Europe, ” he mentioned. “Using the Commission’s theory, every company in Ireland and across Europe is abruptly at risk of being subjected to taxes under laws that never existed.”

Closer to home, Apple was brought before a Senate inquiry in Australia in 2015 after it emerged substantial local gains were being funnelled through Irish subsidiaries.

A 2014 report from Fairfax Media determined Apple paid A $80 million ($ 61 million) taxation on A$ 6 billion ($ 4.6 billion) worth of incomes in 2014, shifting A $8.9 billion ($ 6.8 billion) of untaxed revenue via Ireland.

Apple’s managing director in Australia, Tony King, maintained at the time that Apple met all its Australian taxation obligations.

Inland Revenue said it could not comment on the affairs of individual taxpayers.

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