Paradise Papers Leak Reveals Apple's Secret Tax Bolthole
Monday November 6, 2017. 11:00 PM , from Slashdot/Apple
An anonymous reader quotes a report from BBC: The world's most profitable firm has a secretive new structure that would enable it to continue avoiding billions in taxes, the Paradise Papers show. They reveal how Apple sidestepped a 2013 crackdown on its controversial Irish tax practices by actively shopping around for a tax haven. It then moved the firm holding most of its untaxed offshore cash, now $252 billion, to the Channel Island of Jersey. Apple said the new structure had not lowered its taxes. It said it remained the world's largest taxpayer, paying about $35 billion in corporation tax over the past three years, that it had followed the law and its changes 'did not reduce our tax payments in any country.'
Leaked emails also make it clear that Apple wanted to keep the move secret. One email sent between senior partners at Appleby says: 'For those of you who are not aware, Apple [officials] are extremely sensitive concerning publicity. They also expect the work that is being done for them only to be discussed amongst personnel who need to know.' Apple chose Jersey, a UK Crown dependency that makes its own tax laws and which has a 0% corporate tax rate for foreign companies. Paradise Papers documents show Apple's two key Irish subsidiaries, Apple Operations International (AOI), believed to hold most of Apple's massive $252 billion overseas cash hoard, and Apple Sales International (ASI), were managed from Appleby's office in Jersey from the start of 2015 until early 2016. This would have enabled Apple to continue avoiding billions in tax around the world. The report notes that Apple paid just $1.65 billion in taxes to foreign governments, despite making $44.7 billion outside the U.S. That's a tax rate of 3.7%, which is less than a sixth of the average rate of corporation tax in the world.
Read more of this story at Slashdot.
Jul, Tue 17 - 07:59 CEST