Apple owes almost $1 million in sales tax related to back-to-school gift card promo

Apple has lost a court case with the New York State Department of Taxation and Finance in which it sought to avoid paying sales taxes associated with a back-to-school gift card promotion the company ran in 2011 and 2012, reports the Time Union. As a result, the company has to pay back $995,197  in taxes and interest.

In 2011, Apple’s back-to-school promotion involved a $100 gift card with purchases of computer equipment. Then in 2012, they offered a $50 card with the purchase of an iPad.

According to the Times Union, Apple never remitted sales taxes on the cards, reasoning that they were actually a discount on the purchases that earned the gift cards. After an audit, state tax officials disagreed and said sales taxes were owed on the cards. Apple appealed to a state tax tribunal, where tax matters are sorted out, but the tribunal agreed with the tax department.

Dennis Sellers
the authorDennis Sellers
Dennis Sellers is the editor/publisher of Apple World Today. He’s been an “Apple journalist” since 1995 (starting with the first big Apple news site, MacCentral). He loves to read, run, play sports, and watch movies.