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Apple recently became the “poster child” for corporate tax reform in the U.S. thanks to a recent Senate subcommittee hearing in which Apple was called upon to justify what was believed to be “tax gimmicks” to avoid paying what they owe. By the time the hearing was over, Senate members were asking Apple CEO Tim Cook what they could to do to help major corporations bring money back into the U.S. instead of keeping it in companies overseas.
Today, RudeBaguette is reporting that Apple is again under fire for not paying proper taxes. Only this time, the French are making the accusations.
According to RudeBaguette, Sacem (France’s oldest musician’s union) has announced that Apple owes five million Euro, or about $65,000, in taxes for iPad tablets that were sold in France in 2011.
France’s copie privée, or Private Copy, is an Intellectual Property tax law for compensating artists. Every music-playing device that is sold in France is taxed. That tax is placed in a special fund for musicians “in return for the authorization granted to you to copy the creator’s work, and to support cultural initiatives.” That money is then doled out to members of Sacem. Members include songwriters, music composers, publishers, and more. The organization reported having 145,000 members in 2012.
Private Copy law stipulates that compensation is collected from a device manufacturer, which in this case is Apple. Apparently, Apple has been charging the French for the tax, but hasn’t gotten around to paying what is owed.
RudeBaguette does not report where Sacem has come up with this assessment and it is not listed on the company’s website. There is also no information as to what the musician’s union is planning on doing to get Apple to pay up or what the iPad maker has to say about the accusation.
Since Apple is known for finding legal loopholes that allow them to avoid paying taxes, it is possible that they’ve done the same thing in France. Whether France’s government officials begin fawning over Apple in a subcommittee hearing is not as likely in this case.
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Senate Subcommittee Pushes Apple to Lobby Harder for Corporate Tax Code Overhaul
