iShame: Apple, Google Suspected of Dodging Taxes

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Russian authorities have stated that US tech giants Google and Apple are underpaying federal taxes, according to Vedomosti newspaper.

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MOSCOW (Sputnik) — The issue of additional taxation of foreign Internet companies was brought up at Thursday's presidential administration meeting attended by officials working with the Russian Presidential Aide Igor Shchegolev, Russian communications and media watchdog Roskomnadzor, as well as the lower house of parliament, the State Duma.

As cited by one of the publication's sources close to the negotiations, the meeting took place on the heels of an appeal by Russia-based Internet search engine Yandex to Russia's Federal Antimonopoly Service (FAS) late last month. The company alleges that Google prevents phone and tablet manufacturers from preinstalling competing services on its Android operating system.

Another source said officials began considering an increase on taxes to Google after European Commission statements on forcing US Internet and IT companies to pay taxes regardless of where they are legally based. Currently, these companies only pay taxes in three European countries that traditionally offer a low tax burden: Ireland, Luxembourg and the Netherlands.

The publication's numerous sources detail Google's Russian subsidiary paying considerably less in taxes than Yandex. In 2013 alone, reports show that Yandex paid the Russian government 3.2 billion rubles (about $53 million) and that Google paid 468 million rubles (almost $8 million), a striking disparity.

Purchases from Apple online stores such as AppStore and iTunes are made directly from foreign companies, thus bypassing Russian taxes.

Vedomosti reports that before deciding how to approach the issue of taxes levied on Russian subsidiaries of foreign Internet companies, public discussion needs to be held on the platform of the State Duma and Russia's Media and Communications Union.

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