Earlier this week, the Chinese Ministry of Finance announced that Apple paid out $71 million in back taxes and was fined $10 million for understating sales in 2013.
China’s government-owned Xinhua reported that Apple didn’t account for sales worth $1.4 billion in 2013. In response, China’s financed ministry charged Apple a $10 million fine on top of the $71 million tax bill.
Apple says that the error was unintentional and resulted from a misunderstanding of Chinese tax law. In a statement, Apple spokesperson Josh Rosenstock said:
“During an audit of our 2013 operations, a difference in interpretation of a tax rule resulted in a balance due, which we paid with interest. We pay all the taxes we owe wherever we do business and we will continue working closely with the Ministry of Finance.”
Apple’s tax strategies have come under fire in multiple jurisdictions as the company continues to see unprecedented growth that translates into billions of dollars in revenue each quarter.
In spite of government scrutiny, Apple’s products are extremely popular among Chinese consumers, and important demographic for future growth.
[via CNN Money]