Apple Ordered to Pay £136 Million to UK Government in Unpaid Back Taxes

Apple has been ordered to pay a staggering £136 million in back taxes following an “extensive audit” by the United Kingdom’s HM Revenue and Customs (HMRC).

According to a report from the Financial Times, the Cupertino company said the payment of £137 million, including interest on the unpaid tax, was a “corporate income tax adjustment” covering the years until September 2015. It also notes that its income tax payments “will increase going forward” as the adjustment is incorporated into future tax bills.

As per the audit, Apple Europe didn’t get a fair value for the services it offered, thus creating a significantly low taxable income. The Financial Times claims that Apple Europe employs 791 people and that the company gained a pre-tax profit of £297 million in the 18 months leading up to April of last year.

The UK government department reportedly said “this payment of additional tax and interest reflects the company’s increased activity.” Apple, which has been subject to repeated allegations of evasive taxation tactics in the European Union, has once again asserted it pays every cent of tax it owes.

In a statement, Apple said: “We know the important role that tax payments play in society. Apple pays all that we owe according to tax laws and local customs in the countries where we operate.”

“As a multinational business and the largest taxpayer in the world, Apple is regularly audited by tax authorities around the world,” the company continued. “HMRC recently concluded a multiyear audit of our UK accounts and the settlement we reached with HMRC is reflected in our recently filed accounts.”

“We do not comment on the tax affairs of individual companies,” said HMRC in a statement. “Multinational companies must pay all taxes due and we don’t settle for less. Last year alone, HMRC secured and protected over £8 billion in additional tax revenue from the largest and most complex businesses.”

Apple, among several other large multinational corporations, has been under the microscope in regards to international tax arrangements. Several governments around the world have received money from the company, including Ireland, who Apple will begin paying a $15.4 million USD settlement this year.