Apple Profits Slump 97% As OZ Taxman Takes Slice
Apple’s Australian operation has reported drops across the board for the 2016 financial year, with net profits down by 97%.
For Apple’s financial year ending September 24 last year, post-tax profit dropped to $3.67 million, down from $123 million in 2015. The company revealed its financial performance in Australia in its annual report submitted to ASIC, iTnews reported.
Tax adjustments significantly impacted profit, with adjustments made by Apple for previous years totaling $58.4 million on top of the $69.8 million tax bill for 2016.
However, pre-tax profit for 2016 was also reported to be down, dropping 36% to $76 million. Business Insider Australia reported that revenue also dropped $296 million from the previous year to $7.86 billion in 2016.
Apple reported that the ATO was conducting an audit of its results from 2012.
Australia is set to implement a ‘Google Tax’ from July this year that would see companies hit with a 40% penalty rate for attempting to shift their profits overseas.