Nowadays, many firms and clients are availing of tax audit insurance in order to protect themselves in any scenario. In the case of Apple, a multinational company known as one of the big players in the technology industry, it is not necessary as they were able to survive the tax audit that was carried out by the ATO or Australian Tax Office.
According to Tony King, the local managing director of Apple, they have been given the confirmation by ATO that all of their corporate taxes have been updated regularly. He added that they are only working with ATO alone when it comes to their present and future dealings with taxes.
King was able to answer questions during the Senate committee hearing that was conducted in order to investigate regarding the corporate tax avoidance allegations that were hurled at the company. He said that the extensive tax audit investigation that was conducted by the ATO came to a close in May of 2017.
The ATO was focusing on the transfer pricing pattern, a practice that is sometimes employed in order to move the profits offshore to another country wherein the tax rate is much lower, of the Apple Company.
In the case of Apple, there is a tax adjustment worth $58.3 million that was implemented and the company has already paid for it.
King reassured the public that they are updated when it comes to paying their taxes.
King also said that the latest diverted profits tax law in Australia, or what is often referred to as Google tax, does not have an impact on the company whatsoever.
He shared with the committee that the anti-avoidance legislation is only made to investigate companies that keep records and books of their offshore dealings which is not the same with Apple. He further clarified that the operation of the company in Australia is not affected by the diverted profit tax.
All transactions that have been done by Apple are recorded locally in the country.
They have no reason to take on a tax audit insurance as they are confident that their entire records and books have been perused by the ATO and interview have been conducted with the executive teams of the company to further understand the operations of the company in Australia.