Apple slammed for dodging Aussie tax

Federal MP and champion of the IT price inquiry Ed Husic has hit out at corporations that use complicated schemes to avoid fulfilling local tax obligations, accusing Apple of not paying its fair share.

Husic has been vocal in his criticism of alleged price discrimination on local IT products and services, zeroing in on Apple, and today kept up the attack on global technology companies by questioning Apple’s approach to paying local taxes.

Husic’s comments were made as part of a speech in the House of Representatives regarding a bill proposing amendments to the International Tax Agreements Act of 1953.

The Government revealed on Monday that multinationals operating in Australia could be forced to open the books and reveal exactly how they calculate their local tax bills.

The plan is part of a crackdown on transfer-pricing, where charges and resources are re-allocated to other areas of a corporations’ global business to minimise exposure in high-tax countries such as Australia.

The Government's announcement followed revelations last week Apple only paid $40 million in tax locally despite record revenues of $6 billion.

Husic said today the amount of tax paid equalled two-thirds of one percent of Apple's turnover, "so apparently they racked up $5.5 billion in costs".

“They have a head office here, but you wouldn’t know it because they have a cloak of invisibility and their management team dodge any scrutiny and refuse to engage on public policy issues," he said.

“So given the lack of work they do, you’d hardly say it costs $5.5 billion to maintain the office.”

Google better

Husic compared Apple’s approach to fellow global giant Google, highlighting the latter’s willingness to participate with local authorities’ investigations.

Google paid $74,000 in tax in 2011 off revenue of around $201 million, despite analysts estimating the search giant pulled in $1 billion.

“Google at least engages with government, is prepared to talk and be more open about issues, and while there will be a focus on transfer pricing and their tax arrangements, at least they are willing to engage,” Husic said.

“Apple believes they are above scrutiny and that is unacceptable,” he said. “I’m a great admirer of this firm and the impact they’ve had on the way we use IT, but in the past few years, following attempts to get answers on their pricing strategies, my admiration has well and truly dimmed.”

Husic also took the opportunity today to take a shot at Treasury, which he claimed had justified price discrimination locally among technology vendors in a submission to the IT price inquiry.

He said Treasury’s response to the inquiry made him cynical about its desire to tackle the tax bill.

“It’s been a contrast that Treasury has moved as quick as lightning to shore up the tax base,” he said.

“I just wish Treasury would equally apply the same level of fervour to tackle the scourge of price disparity as it affects businesses and consumers.”

Apple did not respond to a request for comment.