Friday, 20 July 2018
Latest news
Main » Apple settled on Jersey for new tax shelter after Irish rule change

Apple settled on Jersey for new tax shelter after Irish rule change

08 November 2017

The Paradise Papers documents show that Apple's two key Irish subsidiaries, Apple Operations International (AOI) and Apple Sales International (ASI) were managed with the assistance of Appleby's office in Jersey from the start of 2015 until early 2016.

That report points out that Formula One driver Lewis Hamilton also appears among those involved, as part of a kind of financial soap opera. As Breitbart News reported in June 2016: "Tech companies, including Apple, Cisco Systems and Google pay lower overseas tax rates than their non-tech USA peers, such as Boeing or Johnson & Johnson". And even if the company can get an "official assurance of tax exemption" - even better!

With this maneuver, the group disclosed lower profits than it had in reality and paid fewer taxes. In 2014, Apple paid a tax rate of 0.005 percent.

The list is long, because in Brazil, the ministers of Economy and Agriculture, Henrique Meirelles and Blairo Maggi, respectively, denied committing irregularity after knowing that their names appeared linked to companies in tax havens.

"Our changes also ensured that our tax obligation to the United States was not reduced".

More news: Bank of England deputy governor suggests further interest rate hikes are likely

Apple said it believes comprehensive worldwide tax reform is essential, and that it has for many years been advocating for simplification of the tax code.

Margrethe Vestager has announced she is taking another look at Apple's tax affairs after hitting out at technology companies for undermining democracy and allowing "fear" and "greed" to drive anti-competitive behaviour.

Speaking before a Senate investigative subcommittee in May 2013, Apple's CEO Tim Cook pledged, "We pay all the taxes we owe, every single dollar", adding that the company did not need any "tax gimmicks".

Apple enlisted the Bermuda-based law firm Appleby to help it restructure its offshore tax scheme.

According to the Times, the move came as Apple was taking heat for the lack of taxes it was paying on its Irish subsidiaries.

More news: Australia turns down NZ offer to take asylum seekers

Apple moved the operation that holds most of its offshore cash out of Ireland to the Channel Island following a tax crackdown in the Republic.

The head of the world's biggest technology company faced a grilling in Washington over what politicians there claimed were "gimmicks" used to get around USA tax laws.

A law professor who reviewed the documents told the newspaper that there was a "strong possibility" that Apple moved intellectual property to Ireland in a transfer worth almost $200 billion.

Instead of paying Irish corporation tax of 12.5%, or the U.S. rate of 35%, its foreign tax payments rarely amounted to more than 5 % of its foreign profits - and dipped below 2% in some years.

It said the new structure had not lowered its taxes, and stated that it remained the world's largest taxpayer, paying about $35bn in corporation tax over the past three years.

More news: Krajinovic downs Isner to reach Paris final

Apple settled on Jersey for new tax shelter after Irish rule change