Australian Labor MP questions Apple's high expenses claims
Australian Labor MP Ed Husic has questioned how Apple can have such high expenses cutting profits in Australia when none of its manufacturing occurs locally, reports "ZDNet" (http://tinyurl.com/ay9tmoc). The US-based company reported a drop in profits in Australia and New Zealand for the last financial year, yet increased its revenues to AU$6 billion.
Last month it was revealed that Apple raked in AU$5.9 billion in revenues in Australia and New Zealand, but after increases in expenses, the company reported a drop in net profit to AU$58.4 million, meaning the company only paid AU$40 million in taxes in Australia in 2012, compared to AU$94.7 million in 2011, notes "ZDNet."
In parliament today, Husic, who has long targeted tech giants such as Apple over IT pricing in Australia, questioned how Apple could have AU$5.5 billion in costs, the article adds.
"How? They don't manufacture here, there are no factories here. I don't know what their R&D effort is here," he said. "They've got a growing number of retail outlets, which I'm happy about -- they're creating jobs locally -- but surely those outlets don't cost AU$5.5 billion to maintain?"