Apple is trapped in a "tax evasion gate" and Chinese apps have never paid taxes.

Apple is trapped in a "tax evasion gate" and Chinese apps have never paid taxes. Apple has been in constant turmoil in China recently. Following the 315 "Warranty Gate&#82...

Apple is trapped in a "tax evasion gate" and Chinese apps have never paid taxes. Apple has been in constant trouble in China recently. Following the 315 "warranty scandal", its App Store platform has also fallen into a "tax evasion scandal". The hidden problems behind Apple's glorious sales performance have surfaced. Recently, Apple's paid app downloads were accused of exporting goods to China and making huge profits without paying taxes. The nature of this behavior has triggered fierce debate. Recently, the China Consumer Rights Protection Law Research Association held a seminar on Apple’s illegal operations. “According to investigations by relevant departments, Apple’s App Store (App store) has multiple illegal problems such as tax evasion, infringement, and pornography. " Chairman He Shan revealed to the public. "Whether Apple has engaged in tax evasion and infringement, the final result needs to be determined after investigation by relevant Chinese legal agencies. "Zhang Malin from the School of Law at Southeast University pointed out in an interview with a reporter from the International Finance News that relevant agencies must also strengthen supervision and carefully investigate these behaviors. Apple is accused of tax evasion. Hundreds of thousands of paid downloads of Chinese apps have never paid taxes. On January 8, 2013, Apple announced that the number of app downloads in the App Store had exceeded 40 billion, half of which were completed in 2012. He Shan, president of the Consumer Law Research Association, revealed another serious illegal business behavior of Apple: tax evasion. "There are a huge number of Apple users in our country. Apple not only makes money by selling hardware, but also obtains considerable profits through App Store downloads and payments. There are hundreds of thousands of Chinese apps in the App Store, but the sales revenue has never been paid to Chinese customs. "He Shan said. So, what kind of charging chain is the Apple App Store? First, developers are responsible for the development of applications, and Apple is responsible for providing platforms and development tool kits. Then, users log in to the App Store and bundle their credit cards to pay in RMB to download and use. Finally, the payment company converts the RMB paid by the user into US dollars and remits it to Apple in the United States, and Apple shares it with the developer at a ratio of 3:7. What exactly is the App Store? Do the downloads of apps really evade tariffs and violate corresponding management regulations? Let’s take a look at the opinions of both parties: Zhengfang: As long as it is sold in China, it should pay taxes. He Shan, the president of the China Consumer Rights Protection Law Research Association, raised the issue of tax evasion in the Apple App Store. Chairman He Shan: The software of the American Apple enters China through the Internet. We iPhone users buy the software and pay for it. The items have never paid taxes to our tax authorities, so there is a serious tax evasion problem. He Shan explained in detail that according to the provisions of the civil law, the application software in the App Store also belongs to the category of items. According to the provisions of my country's customs law, imported items are subject to tariffs. Apple is the taxpayer of tariffs, and Apple uses the Internet to bypass Chinese customs and reach Apple mobile phone users, sell Chinese paid applications in my country, and evade taxes. This is essentially a serious smuggling act. Dr. Jiang Hui, director of the EMBA Center of Shanghai University of Finance and Economics, believes that the Apple App Store is actually equivalent to an online intermediary. Dr. Jiang Hui: There is no doubt that App is a profit model. It is actually an intermediary on the Internet. Apple also charges merchants or individuals who upload software a fee, and it also charges users who download software. This is a typical intermediary service model. It is a profit model and must be taxed. Lawyer Qiu Baochang from Beijing Huijia Law Firm believes that this is to avoid the supervision of customs and tax authorities. Lawyer Qiu Baochang: Chinese people are trading here, and if you make a profit, you should pay taxes if you have transactions. First of all, you have to declare the amount you are asked to pay. You have the obligation to declare. Not only do you not declare, you also use technical means to evade tax obligations and avoid the supervision of customs and tax authorities through Internet technology. Cao Sanming, vice president of the China Consumer Rights Protection Law Research Association and vice president of the National Judges College, said that Apple's products allow Chinese consumers to experience advanced technology and innovative consumption models, but we cannot turn a blind eye to its problems. He called on administrative agencies and judicial agencies to investigate and punish Apple's illegal operations in accordance with our country's laws to safeguard the rights and interests of our country's consumers and the dignity of the law.