Apple agrees 500m-euro tax deal with France

Apple said yesterday it had reached an agreement with French authorities to settle 10 years of back taxes, becoming the latest US company to reach a deal with France which has led a European push for higher taxes on tech giants. French news weekly L’Express reported that Apple had paid nearly 500 million euros ($570 million) to resolve the case in a confidential settlement reached in December.

Apple declined to disclose the amount paid, but a source familiar with the case confirmed the figure. “The French tax administration recently concluded a multi-year audit on the company’s French accounts and an adjustment will be published in our public accounts,” Apple said in a statement. “We know the important role taxes play in society and we pay our taxes in all the countries where we operate, in complete conformity with laws and practices in force at the local level,” added the company. French authorities declined to comment further, citing the confidentiality of tax matters.

Apple is one of several American technology giants in the line of fire in Europe over their tax strategies, which see them route their income through low-tax nations such as Ireland or Luxembourg. In 2016, it was ordered by the European Commission to pay 13 billion euros in back taxes to Ireland. The European Commission said Apple paid an effective corporate tax rate of just 0.005 per cent on its European profits in 2014 -- equivalent to just 50 euros for every million.

The deal in France comes as the government prepares to push ahead with its own unilateral “GAFA tax” -- named after Google, Apple, Facebook and Amazon -- faced with the failure of EU members to agree on how to get technology companies to pay more tax on their European operations.