, Columnist
How Apple Calculates and Pays Its Taxes
The key is how it defines its liabilities.
A matter of definitions.
Photographer: Marlene Awaad/BloombergThis article is for subscribers only.
Apple's legal defense against European Commission charges of improper tax avoidance is yet to be heard. But even based on the company's own reporting, Apple's claim that it has always paid all the taxes it owed is disingenuous.
The recent ruling -- forcing Ireland to hit the iPhone maker with 13 billion euros ($14.5 billion) in back taxes -- throws harsh light on a long-standing practice that Apple described to investors but never stressed. Now it will be tested in the courts.