Although an arm of Apple Inc in China committed tax irregularities that the government said involved 452 million yuan ($70.87 million) as of the end of 2013, analysts said on Thursday that this finding won't trouble most Chinese consumers.
Apple Computer Trade (Shanghai) Co miscalculated its accounts, omitting as much as 8.79 billion yuan that should have been counted as revenue by the end of 2013, and it failed to pay 452 million yuan in due tax. The findings were contained in a report issued by the Ministry of Finance (MOF) on Wednesday.
The company was founded in January 2001 with registered capital of $860,000, and it engaged in the sales of computer hardware and software, according to the registration system of the State Administration for Industry and Commerce.
The news came as the technology world awaited the landing of Apple's new iPhone on Wednesday U.S. time.
Zhao Yang, an analyst at Beijing-based consultancy CCID, told the Global Times Thursday that the tax issue won't have much impact on Apple's business in China or the sales prospects of the iPhone 6S.
"Overseas customers might stop buying a company's products if its reputation is tainted. But I don't think Chinese consumers … care that much about corporate responsibility," Zhao said.
Dai Zhiying, a Shanghai-based fan of Apple, said the tax issue wouldn't affect his love for Apple products, although it has lowered the position of the Apple brand in his heart.
"That the company's reputation is stained can't obliterate the truth that it has wonderful products," he told the Global Times Thursday.
The MOF said that the Apple subsidiary has paid the 452 million yuan tax, plus a surcharge of 65 million yuan for overdue taxes.
The MOF 2014 inspection report covered 78 enterprises, including State-owned enterprises, listed firms and foreign-owned companies.
The irregularities found by various fiscal units under the MOF across China were worth 69.08 billion yuan, involving tens of thousands of companies, both domestic and foreign. The MOF has ordered those involved to correct their wrongdoings.
