Apple Europe to pay $185 million to settle tax claims

Apple Europe has agreed to pay nearly £137 million ($185 million) to the U.K., settling tax claims covering “prior years up to Sept. 16, 2015,” according to a filing with the Companies House, as noted by Law360.

The payment comes after Her Majesty’s Revenue and Customs (HMRC) conducted an “extensive audit” of the company’s pre-2015 tax filings. The department reports that “this payment of additional tax and interest reflects the company’s increased activity.” The tax bill is specifically targeted at Apple Europe, which provides various support, marketing, financial, and administrative services to “other group companies.”

HRMC says its audit found that Apple Europe wasn’t paid a fair value for services it offered to other Apple subsidiaries, creating an artificially lower taxable income. Apple’s payment covers several years all the way up to 2015.