Apple Inc. has conceded to the French tax administration as the iPhone maker recently confirmed that it has finally reached a settlement to pay back taxes.
Reuters reported that Apple's French division has agreed to pay France in back taxes. While the Cupertino-based company did not declare the amount it will pay, French state media estimated that the taxes could be at $571 million or 500 million euros.
In a statement, Apple France said, "As a multinational company, Apple is regularly audited by fiscal authorities around the world. The French tax administration recently concluded a multi-year audit on the company's French accounts, and those details will be published in our public accounts."
Negotiations took several months before a deal was struck in December. The recent development with Apple is in line with France's efforts in taking the world's most prominent technology companies.
Aside from Apple Inc., France is also planning to tax Amazon, Alphabet Inc.'s Google, and popular social media platform Facebook. The country looks to impose a tax on firms that profit from the European region.
Apple follows suit after Amazon settled a tax dispute with the French tax administration in February 2018. The administration had been demanding almost 200 million euros from the online retail group. It is unclear how much Amazon paid.
This is not the first time the American tech giant faced tax disputes. The European Union previously accused Apple of not paying enough in taxes. The accusations were attributed to the iPhone provider's Ireland operations. While the tech provider stressed that its tax methods in France were legal, the company was sued for $15.3 billion. Apple has since paid Ireland in billions and kept the amount in escrow.
Meanwhile, European Union members, including France, continue to seek taxes from American tech firms. French Chancellor Philip Hammond recently declared his country's plans to impose a new tax policy for online companies.
According to The Guardian, Hammond said this new special digital services tax proposal will be introduced to the public in 2020. If approved, the tax is expected to haul in over £400 million for government funding.
Furthermore, the European state is planning to impose the country's very own "GAFA" tax. This particular tax is dedicated to four of the world's leading Internet giants: Google, Apple, Facebook, and Amazon.
Both Amazon and Apple seem to have made progress in Europe's bid to claim unpaid taxes. Amazon has stated that it will declare earnings in France and other European countries. It is unclear if Apple, Facebook, and Google will follow suit.
