Despite making $4.2 billion in sales in New Zealand since 2007, Apple pays no taxes in that country, the New Zealand Herald reports. Apple has paid $37 million on that income, but the money went to the Australian Tax Office instead of staying in New Zealand.
On that same sum, taxes in New Zealand would have totaled $357 million, but since Apple’s New Zealand operations are run out of Australia, the company is able to take advantage of a tax treaty that “sees dual claims on income tax default to where the company is controlled.” Several New Zealand politicians confirmed the deal was legal, but Deborah Russell, a recently selected Labour Party candidate, said Apple is taking advantage of “that age-old distinction between legality and morality.” Revenue Minister Judith Collins recently released tax reforms aimed at netting more income from international businesses operating in New Zealand, but it’s unclear how those changes will affect Apple. An Apple spokesperson said the company follows all international tax laws, adding that “Because our products and services are created, designed and engineered in the US, that’s where the vast majority of our tax is paid.” But the company is no stranger to tax feuds, and is currently embroiled in a battle with the EU over its Irish tax bill.
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