There seems to be an operation tax evasion cleansing going on around the world right now. Just when we thought the Pandora tax revelation drama is enough, Apple is getting dragged in South Korea over tax payment.
In a new report from South Korea, a lawmaker in the country says Apple is owing the country about $46 Million in taxes. According to the report, the company didn’t pay because carriers footed the bill for advertising devices like the iPhone and iPad.
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The Korea Times reports:
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The Genesis of this calculation is from an antitrust dispute in South Korea, relating to who is paying for the advertising of iPhone and iPad in South Korea.
This issue of antitrust has been settled and it saw Apple agreeing to spend some $90 million investing in the country’s infrastructure including research and development in the country’s mobile phone and manufacturing sector, repairs and warranties, and digital education in schools.
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But according to industry estimates, aside from the antitrust issues, Apple may also have avoided paying some additional taxes:
According to Rep. Jang as quoted by iMore, the National Tax Service “needs to collect the corporate tax Apple Korea did not pay through inspections, amid these circumstances in which the company has made gains.” They further stated that “taxes should be imposed on the company for gains made from passing promotional expenses onto partner firms via having abused its dominant status in business relations.”
More updates as to how this plays out will be revealed in coming weeks.