Apple has had to pay 452 million Chinese yuan ($71 million US) in back taxes in China, along with a 65 million yuan ($10 million) fine after an audit by the Ministry of Finance, which has recently been cracking down on taxation of US companies, showed the company understated its sales and over-reported its profit. The iPhone maker, which has recently risen from seventh to third place in the Chinese market (after briefly reaching the top spot) did not contest the finding.
“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,” said Josh Rosenstock, a spokesman for Apple. “We pay all the taxes we owe wherever we do business, and we will continue working closely with the Ministry of Finance.” The Ministry also charged Microsoft some $140 million in back taxes late last year.
