As Apple unveils new iPhone, China blasts firm for US$70m tax shortfall
As Apple announced its latest iPhone model, China's Ministry of Finance took the US tech firm to task for allegedly avoiding tax in one of its biggest markets.
Apple Computer Trading (Shanghai), the company's Chinese subsidiary, was found to have underreported revenue to the end of 2013 and was ordered to rectify the issue.
The ministry said Apple then paid up the shortfall, avoiding any fines.
Apple did not respond to multiple requests for comment.
This is not the first time Apple has been accused of not paying enough taxes. The European Commission last year sought to limit a deal struck between the US firm and Ireland to allow it to significantly lower its tax bill for its EU business.
Ireland is expected to face censure by the Commission over the issue within months, according to the Irish Times.
At an Australian Senate hearing in April, Apple executives defended the company's financial practices, which lawmakers described as "international tax avoidance".
Shi Zhengwen, a professor at the China University of Political Science and Law, told the Beijing Times that reform was needed to reduce tax avoidance and increase compliance.
Greater China – which includes the mainland, Hong Kong and Taiwan – is Apple's second largest market after the Americas, bringing in US$13.2 billion in revenue in the third quarter of 2015.
However, the company has not always had an easy time in the country, particularly from state media.
