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Apple loses the judicial fight with the Treasury for surcharges after a million-dollar penalty

Date: June 22, 2024 Time: 16:23:26

Apple loses its dispute with the Tax Agency in Spain for the surcharges charged after its liquidations executed out of time in the framework of a tax inspection that led to a million-dollar penalty. 800,000 euros between ‘surcharge’ and default interest for a late settlement of the Non-Resident Tax executed by the group.

The case began in June 2015. This purchase from the recurring firm the products it distributes in these spaces- and the one that has registered sales of digital services such as the cloud and others. As a result, as reflected in the ruling of the Court dated May 31 and consulted by La Información, there will be a permanent establishment in Spain of the entity based in Dublin.

In the words of the AEAT itself, it is understood that a firm operates through a permanent establishment in Spain “when it acts in the territory through an agent authorized to contract, in the name and on behalf of the non-resident”. The Treasury understood that the Irish company operated in this way, “from which was followed the subjection to certain obligations and regime regarding the Non-Resident Tax related to the distribution of electronic products and devices.” He imposed a million-dollar liquidation act in December 2016, which was signed with the approval of the US multinational.

This decision by the Tax Agency and the Apple firm had considerations regarding the following years. This existence of a permanent establishment makes the tax bill for Non-Resident Taxes higher. In mid-2017, Apple filed a statement and voluntarily regularized the 2013-2014 financial year as well. But a few months later, the treasury almost claimed him

Apple complained before the Economic-Administrative Court, which does not agree with it. Go to the National Court. The key argument put forward by the company is that the minutes of the 2011-2012 financial years -the amount of which is not made public in the judgment- serve as a requirement, so that this money voluntarily entered -which exceeds the barrier of 3 million euros- corresponding to 2013-2014 does not have to be accompanied by a 20% surcharge. Now, the Court takes away from reason and supports the vision expressed during the legal proceedings by the State Attorney.

The Court rules out that the requirements to ‘stop’ the clock of possible delays in the settlements of past years are met

The magistrates of the Contentious Chamber reject that the previous jurisprudence that Apple’s lawyers clung to serves to justify that previous requirement and, therefore, that extemporaneous payment. He understands that this self-assessment was filed without this requirement from the AEAT, which means that the surcharge settled is in accordance with the law. Thus ends the first major dispute between the company based in Cupertino (United States) with the Spanish Treasury. Traditionally, it has been signing the different settlement acts in accordance, contrary to what has happened with other technology giants such as Oracle or Microsoft that have maintained pulses that have lasted up to a decade.

The Irish division that has fought with the Treasury for these surcharges is the sole partner of Apple Retail Spain, the subsidiary with which the group manages all physical stores in the country. 2017. He referred, among other taxes, to Non-Residents between 2011 and 2012.

No new ‘scares’

Since that great fiscal inspection, the apple company has been presenting its accounts without reporting any ‘extra’ investigation or settlement records. In the last fiscal year that ended in September 2022, according to the accounts presented in the Mercantile Registry, it declared sales of 168 million in the corporate services subsidiary and 551 million in the division of establishments and a gas for Corporate Tax of 16 million and 3.3 million, respectively. There is no real provision for tax expenses.

The company operates in Spain with two subsidiaries. One of them Apple Marketing Iberia Reinvoices to the US parent and the Irish distribution subsidiary, the subject of the case now resolved in the National Court. The other, Apple Retail Spain, aims to record all sales managed in its physical stores. They bought the products precisely from Apple Distribution International Limited.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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