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Apple tax dodges mentioned in Paradise Papers

by on07 November 2017

 
Sidestepped Irish tax increases

The Paradise Papers have revealed some of the Fruity Cargo cult Apple’s dodgy deals to avoid paying the ridiculously low Irish taxes.

For those who came in late, the Paradise Papers is a set of 13.4 million confidential electronic documents relating to offshore investments that were leaked to a German newspaper and on 5 November 2017 became breaking news.

While the Tame Apple Press haw focused on how famous people like the British Queen and Bono avoided paying tax, it seems that Jobs’ Mob also gets a mention.

The papers reveal how Apple sidestepped a 2013 crackdown on its controversial Irish tax practices by actively shopping around for a tax haven.

It moved a firm holding most of its untaxed offshore cash, now $252 billion, to the Channel Island of Jersey. Apple insists that the new structure did not lower its taxes. Although the same comment also insists that it pays all the tax it owes.

But the 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 zero percent corporate tax rate for foreign companies. Paradise Paper 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 US. So despite what Apple says, it pays a tax rate of 3.7 percent, which is less than a sixth of the average rate of corporation tax in the world.

Last modified on 07 November 2017
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