Apple shifted assets to island to evade tax scrutiny

Apple shifted assets to island to evade tax scrutiny

According to the reports, legal advisory firm Appleby, which was a subject of the Paradise Papers data hack, advised Apple to move the companies to Jersey.

The records, shared by the International Consortium of Investigative Journalists with the New York Times and other media partners, were obtained by the German newspaper Süddeutsche Zeitung.

Apple revamped its business empire to take advantage of tax loopholes on the European island after a crackdown on Ireland's loose rules began in 2013, the documents reveal.

"US multinational firms are the global grandmasters of tax avoidance schemes that deplete not just USA tax collection but the tax collection of most every large economy in the world", former corporate tax adviser Edward Kleinbard was quoted as saying by the NYT.

Apple did not respond to a request for comment yesterday by the Irish Independent concerning its inclusion in the "Paradise Papers".

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

The moves came after a U.S. Senate subcommittee found in 2013 that Apple had avoided tens of billions of dollars in taxes by using overseas havens.

"We pay all the taxes we owe, every single dollar", Cook declared at the hearing.

But by setting up a perfectly legal zero percent corporate tax rate structure in the Isle of Jersey, a BBC analysis found that with Apple making $44.7 billion in 2017 foreign profits outside the US, the company only paid $1.65 billion, or 4 percent, in foreign taxes.

Up until 2014, the tech company had been exploiting a loophole in tax laws in the USA and the Republic of Ireland known as the "double Irish".

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The European Commission has opened a new line of enquiry into Apple's tax affairs in Ireland to determine whether the company has breached EU competition laws for a second time a year after it was ordered to pay €13 billion in unpaid taxes.

But Apple has come under fire both in the United States and the European Union for its tax practices.

"The changes we made did not reduce our tax payments in any country", Josh Rosenstock told the Times. In fact, our payments to Ireland increased significantly and over the last three years we've paid $1.5 billion in tax there - 7% of all corporate income taxes paid in that country. That allowed the Isle of Jersey to cut its corporate tax rate to zero percent a decade ago.

Congressional Republicans are also seeking to impose a 10 percent tax on some of the profit that US businesses say is earned offshore - half the rate they are proposing for profit in the United States. The move is said to have enabled Apple to amass as much as $252bn (£191bn) of cash offshore.

Apple said it complies with laws and supports comprehensive worldwide tax reform and a simpler tax system.

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