Apple facing £1.5bn tax avoidance bill?
Gadget vendors Apple have been warned that they're looking at a £1.5billion bill if they are found guilty of avoiding taxes across Europe. The tech behemoth is currently under investigation by authorities in the EU who, if they find Apple guilty, they have the power to rake all those unpaid taxes back in.
This week, Apple talked to investors about the scale of the potential repercussions. The amounts they could end up paying out 'could be material', which is a stock market term which translates to 5% of their average profits over the last three years. That should work out at over a billion quid, which is not to be sniffed at.
Apple's deal with Ireland and taxes has been scrutinised for a while now.
In a statement to the stock exchange, Apple said: "If the European Commission were to conclude against Ireland, it could require Ireland to recover from the company past taxes covering a period of up to 10 years reflective of the disallowed state aid, and such amount could be material."
Of course, Apple made £8.9billion in profit between January and March of this year, so they're invariably not too worried about these looming tax penalties. They've probably got a couple of billion down the back of the sofa that's fallen out of their jeans pocket.
European competition chiefs will release their report in June.