Approximately fifty employees of Apple have been terminated due to allegations of defrauding the company through its Matching Grants initiative, a program in which Apple promises to match charitable donations made by its staff.
To date, six of the dismissed employees from the Bay Area have also been charged with tax fraud concerning counterfeit donations …
Overview of Apple’s Matching Grants Program
The Matching Grants program was introduced by Apple CEO Tim Cook in 2018. Under this initiative, for every dollar an employee contributes to a charity, Apple matches it with two dollars, with a yearly cap of $10,000 per employee.
“We recognize the importance our employees place on contributing to the communities in which we all live and work. I’m pleased to announce that effective immediately, Apple will match all employee charitable contributions, up to $10,000 annually, on a two-to-one basis.”
For instance, if an employee donates the maximum of $10,000, Apple contributes an additional $20,000, resulting in a total of $30,000 for the charity.
Dismissals and Fraud Charges
India Today reported that around 50 employees have been let go, with six facing criminal charges as well.
Allegations indicate that some employees, in collusion with certain nonprofit organizations—some reportedly affiliated with the Indian community—fabricated donations to misuse the program.
The accusations suggest that employees donated money to nonprofits, which were then matched by Apple. Subsequently, these nonprofits allegedly redirected the original donations back to the employees, allowing them to keep Apple’s matching funds. If true, this would violate corporate regulations and US tax laws, as the employees’ fraudulent claims could constitute tax fraud.
The charges involve around $152,000 over three years.
If the allegations hold true, it would imply that Apple was deceived into making charitable contributions to selected organizations, while the state of California faced tax fraud due to non-existent donations by employees.
Image by Giorgio Trovato on Unsplash
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