SPAIN'S tax authorities have launched an inquiry into the affairs of Apple Inc, the world's third-largest company in terms of share capital.
An inspection of IVA, income tax and company tax due and paid between 2009 and 2012 by Apple Marketing Iberia has been called two years after the European Commission opened an investigation into the technology giant's tax management.
This does not imply the company has committed any offence, Spanish fiscal authorities stress.
Apple Marketing Iberia's raison d'être is selling and marketing Apple products, for which it receives a commission – currently from just one firm within the corporation's umbrella, Apple Distribution International – and which was reported to be at 1% in 2012.
Since then, Apple Marketing Iberia has declined to reveal publicly what percentage of commission it receives.
Profits of US$4.1 million – 41% up on the previous year – were announced back then, and the Apple outpost in Spain, one of two in the country, paid US$3.2m in company tax or Impuesto sobre Sociedades, pouring its net profit into various voluntary reserves.
In 2015, Apple Marketing Iberia's turnover went up to €27.6m from €19.8m in 2014, or an increase of 38.9%.
Like many other international business giants, Apple channels its profits into countries with less fiscal pressure – some of the most popular for big corporations being Luxembourg, The Netherlands and the Republic of Ireland – and then carries out other financial strategies to reduce its tax burden even further.
Apple's other holding in Spain, Apple Retail, runs its stores throughout the country and is invoiced by Apple in Ireland for the more expensive products sold, meaning that by settling these invoices, the cash made from sales in Spain goes directly to Ireland and tax is paid at Irish rates.
Tax on profits in Spain is double that of the Republic of Ireland.
These strategies are completely above board in the same way that companies and individuals have hitherto been able to invest part of their funds in offshore accounts – but global fiscal requirements have tightened up since the worldwide financial crisis.
Read more at thinkSPAIN.com