Approximately fifty employees at Apple have been dismissed for allegedly committing fraud through the Matching Grants program, where the company matches employee contributions to charitable organizations.
So far, six of the dismissed Bay Area employees face charges related to tax fraud connected to fictitious donations …
Overview of Apple’s Matching Grants Program
In 2018, Apple CEO Tim Cook initiated a charitable donation matching program. This program stipulates that for every dollar an employee donates to charity, Apple will contribute two dollars, with an annual limit of $10,000 per employee.
We understand the significance our employees place on supporting the communities they inhabit. I am thrilled to announce that starting immediately […] Apple will match all charitable donations made by employees, up to a maximum of $10,000 annually, at a two-to-one rate.
As an illustration, if an employee contributes the maximum of $10,000, Apple will add an additional $20,000, totaling $30,000 for the charity.
Dismissed Employees Charged with Fraud
India Today reports that around 50 employees have been terminated, and six individuals have been charged with criminal offenses.
The allegations indicate that certain employees collaborated with specific nonprofit organizations—some of which are reportedly associated with the Indian community—to create fictitious donations and take advantage of the program.
Allegedly, employees made donations to these nonprofits, which were then matched by Apple. However, these nonprofits supposedly redirected the original donations back to the employees, thus allowing them to claim Apple’s matching funds. If true, this action would not only violate corporate policies but also infringe upon U.S. tax laws, potentially constituting tax fraud.
The charges involve around $152,000 over three years.
If substantiated, this would indicate that Apple was deceived into making charitable contributions, while California was misled regarding tax deductions for non-existent employee donations.
Photo by Giorgio Trovato on Unsplash
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