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News UK UK faces severe money laundering threats London Business News

News UK UK faces severe money laundering threats  London Business News

Apple pays just £9m in UK tax as sales top £1.1bn – CityAM Mon, 12 Jul 2021 09:00:00 +0100-Leading UK RegTech specialist SmartSearch has warned the UK could be left behind in the fight against money laundering and financial fraud, if it fails to …

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UK faces severe money laundering threats | London Business News

July 12, 2021

Leading UK RegTech specialist SmartSearch has warned the UK could be left behind in the fight against money laundering and financial fraud, if it fails to coordinate with the new agency being formed by the EU.

It has emerged that the European Commission will launch the Anti-Money Laundering Authority (AMLA) as part of a raft of measures contained in its action plan, set to be revealed on July 20.

The AMLA is a dedicated agency working independently of member states’ national authorities, giving it much greater power to identify and act upon significant money laundering threats.

It will also have new powers to fine businesses in breach of regulations up to ten per cent of turnover, and it will be looking at risks from non-EU countries such as the UK.

John Dobson, CEO at SmartSearch which operates both in the UK and the EU, said: “The formation of a dedicated resource to tackle the growing problem of money laundering is a positive step by the EU.

“Since the outbreak of the global pandemic we’ve seen organised criminal gangs in the UK taking advantage by exploiting loopholes in AML processes and using increasingly more sophisticated forged ID documents to get their dirty money through the laundering process.”

As part of the UK Budget announcement in March chancellor Rishi Sunak announced the formation of a new HMRC taskforce to tackle tax evasion and fraud, which is set to employ 1,000 extra investigators.

Dobson says the task force needs to work alongside agencies in other countries and make use of the latest technology to identify the source of the most significant money laundering threats.

He adds: “Of course, this is a global issue so it’s vital that the UK coordinates its response with the EU and other nations, as organised crime gangs won’t be concerned about political borders.

“Obviously as we are no longer part of the EU, this new authority will have no jurisdiction in the UK, but in order to be able to fight the threat of money laundering here in the UK most effectively, it’s vital that we coordinate and cooperate with the AMLA, otherwise risk getting left behind.”


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UK faces severe money laundering threats | London Business News … Mon, 12 Jul 2021 09:00:00 +0100-Apple paid just £9m in tax in the UK last year even as the tech giant weathered the pandemic to pull in sales of more than £1.1bn.

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Apple pays just £9m in UK tax as sales top £1.1bn

July 12, 2021

Apple paid just £9m in tax in the UK last year even as the tech giant weathered the pandemic to pull in sales of more than £1.1bn.

In recently filed accounts the iPhone maker’s two UK subsidiaries — Apple Retail UK and Apple UK — posted revenue of £1.1bn and £372m respectively in 2020.

Pre-tax profit for the divisions came in at £31m and £44m for the year to 29 September.

Yet Apple’s combined UK tax bill was just £9.2m — even lower than the previous year.

Apple, which has a market valuation of $2.4 trillion, is one of a string of major tech firms to come under fire for reducing their UK tax bills by funnelling profits through divisions in low-tax jurisdictions.

The G20 has agreed to tax reforms tabled by the OECD which will establish a new minimum global corporate tax rate and ensure large multinational companies pay tax in the countries in which they sell products or services.

An Apple spokesperson said: “At Apple, we respect and support the important role taxes play in the economic growth and well-being of nations. 

“As the biggest tax payer in the world, we pay all taxes owed in accordance with each country’s laws and regulations everywhere we operate in the world. We also have been open about our strong support of the OECD’s development of a new inclusive tax framework.”

The filings showed the impact of the pandemic on Apple as Covid lockdowns forced the company to shutter stores.

Apple’s UK retail sales fell 20 per cent from £1.4bn the previous year, while pre-tax profit fell from £39m to £31m.

Meanwhile Apple UK, which provides services such as research and development, said operating costs had increased 26 per cent to £330m due to “increased activities performed by the company”.

Accounts filed for Apple Europe, which is also registered in the UK, showed a 15 per cent increase in revenue to £810m, while pre-tax profit rose from £443m to £526m.

Across all three divisions turnover slipped three per cent to £2.2bn while total operating profit rose 16 per cent to £592m.

Apple said its combined tax payments increased to £97m from £91m the year before.


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– July 12, 2021
News UK UK faces severe money laundering threats London Business News

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