Apple shifted assets to island to evade tax scrutiny

Posted November 08, 2017

They reveal that Apple was actively seeking a tax haven in 2014 after European officials began to crack down on the so-called "double Irish" tax structure that enabled Apple to save billions of dollars in taxes around the world.

There's no indication Apple has done anything illegal.

It is claimed that the companies were set up in Jersey after Apple "shopped around" for a new jurisdiction following the closure of a tax loophole in Ireland which the firm exploited until 2013. "In fact, our payments to Ireland increased significantly and over the past three years we've paid $1.5bn in tax there - 7% of all corporate income taxes paid in that country", said an Apple statement.

The NYT and the International Consortium of Investigative Journalists cited confidential records that were obtained by the German newspaper Suddeutsche Zeitung and shared.

More news: TCU shuttle bus driver arrested after shooting at another driver

Apple said to the paper that it complies with laws and supports comprehensive worldwide tax reform and a simpler tax system. Some of the tech giants had allegedly paid corporate tax rates as low as Apple's 0.00045 percent, versus nearly 29 percent for USA non-tech firms.

The documents, however, do not say why Jersey has not become the new tax home for all of the three companies.

Panorama's Paradise Papers reporting team alleges Apple subsidiaries holding its untaxed offshore cash were shifted to Jersey in the Channel Islands.

Apple said it has operated within the rules of the law and that it's paid more tax than any other company or individual.

More news: Bucs WR Evans suspended one game for hit on Saints player

The Papers are just a few of the hundreds of thousands leaked from offshore law firm Appleby, which recently warned its super-rich clients of a data breach in September past year, reminiscent of the data breach in 2015 on Panamanian law firm Mossack Fonseca. "We don't stash money on some Caribbean island". "There was no tax benefit for Apple from this change and, importantly, this did not reduce Apple's tax payments or tax liability in any country". We do not depend on tax gimmicks.

The documents revealed that Apple approached Appleby, a Bermuda-based law firm known for managing offshore companies.

Apple shifted two of its subsidiaries from Ireland to the island of Jersey in an apparent effort to shield assets from European tax regulators, according to leaked documents from a Bermuda law firm that were reported by the New York Times.

"Apple pays tax at Ireland's statutory 12.5 per cent", Apple said in a statement on Monday night in response to worldwide coverage of its tax affairs in this and other media outlets.

More news: Saudi Arabia arrests 11 princes in anti-corruption sweep

Despite being invited to do so, the corporation did not respond to speculation that Apple Operations Europe, which is now tax-resident in Ireland, may have spent tens of billions of euro, and possibly well in excess of €100 billion, on intellectual property which it brought from Apple subsidiaries now based in zero-taxed Jersey. The company reports its effective global tax rate at 24.6 percent.