Time passes and Apple is losing more and more margin in the area of taxation. This time, it’s California that is calling for an end to the little partnership between Apple and Cupertino which consists of keeping all tax revenue from sales in the state just for themselves.
One less tax advantage for Apple from 2025
It’s not just in Europe that Apple is losing its tax benefits. After two years of investigation, the state of California officially puts an end to the tax agreement between Apple and its city of residence, Cupertino.
Until now, all sales of the company made in California were tax attributed to the city of Cupertino, even if they originated in other counties and jurisdictions of the state. A fruitful collaboration in which Cupertino pays part of this sum to Apple and which obviously amounts to millions of dollars. A stratagem which will therefore end in 2025.
From this date, each sale will be attributed to the city concerned, a victory for the state of California although Cupertino seems satisfied with the final verdict. The city’s municipal council had apparently set aside $80 million over the past two years in case the courts demanded reimbursement and, above all, an immediate end to the practice.
However, this will represent a significant financial loss for Apple in the future, but more so for Cupertino. We still remain far from the 13 billion euros in tax arrears to be repaid to the European Commission.
