Core Viewpoint - Apple has relocated eight iPhone production lines from China to India, expecting to benefit from subsidies and lower costs, but has encountered unexpected tax demands from the Indian government based on a 1961 tax law that requires taxation on global revenue, leading to significant financial implications for the company [1][6][17]. Group 1: Apple's Investment in India - Apple has invested significantly in India, collaborating with Foxconn and Tata Group to establish five iPhone factories with equipment investments amounting to several billion dollars and employing thousands of workers [3][17]. - The Indian government initially offered substantial subsidies, totaling 230 billion rupees, to attract foreign investment [3]. Group 2: Taxation Issues - The Indian tax authorities have invoked a 1961 law that allows them to tax foreign companies based on their global profits if they have a "business connection" in India, which Apple is now facing due to its control over the production equipment in the factories [5][6]. - Apple is being asked to pay taxes based on its global revenue of $383 billion, resulting in a potential tax liability of $4.1 billion [6][17]. Group 3: Government Response and Industry Impact - The Indian government is aware that aggressive tax measures could deter foreign investment, leading to a temporary cooling of the situation after media scrutiny [11][17]. - Other foreign companies, including Xiaomi, Vivo, and Volkswagen, have also faced similar tax issues in India, indicating a pattern of aggressive tax enforcement against foreign firms [14][15]. Group 4: Long-term Implications - The situation highlights India's strategy of attracting foreign investment with initial incentives followed by increased taxation, which may ultimately discourage foreign companies from investing in the country [17][18]. - The ongoing tax disputes may lead Apple to reassess the viability of its manufacturing operations in India, despite its previous investments [17][18].
被割韭菜了!苹果刚将生产线搬过去,印度就翻出1961年旧法,要征收数十亿美元的税!