Apple NZ’s one percent tax rate unacceptable, says Oxfam

In the wake of the European Commission ruling that Apple should pay up to $20 billion in back taxes to the Irish government, Oxfam has called for Apple New Zealand to pay its fair share of taxes, along with other corporations.

Oxfam says that, last year, Apple’s New Zealand company, Apple Sales New Zealand had sales in excess of $730 million, but paid less than $9 million in income tax, a rate of just over one percent.

Oxfam New Zealand’s executive director, Rachael Le Mesurier, acknowledged that Apple was complying with the law but said its tax rate was “utterly unacceptable” in a world with great inequality and poverty. “The schemes and deals that allow multinationals to minimise their tax, whilst legal, cannot be tolerated,” she said.

“If people are to have trust in the tax system, all governments, including New Zealand, must act immediately to end tax dodging. Companies must be forced to disclose where they generate their profits and where they pay their taxes. This would give governments and civil society the ability to hold these companies to account.”