Apple shifts profits to Jersey

Apple shifts profits to Jersey

Apple shifts profits to Jersey

Tax strategies like the ones used by Apple - as well as Amazon, Google, Starbucks and others - cost governments around the world as much as $240 billion a year in lost revenue, according to a 2015 estimate by the Organization for Economic Cooperation and Development.

"We strongly support efforts from the global community toward comprehensive worldwide tax reform and a far simpler system".

Apple has said that its arrangements are legal and it pays all the taxes it owes.

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.

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 previous year, reminiscent of the data breach in 2015 on Panamanian law firm Mossack Fonseca.

The news outlet and the nonprofit investigative organization cited confidential records that were obtained by the German newspaper Suddeutsche Zeitung and shared.

CNET is unable to verify whether the documents are real or have been altered.

Apple's 2017 accounts showed it made $44.7bn outside the United States and paid $1.65bn in taxes to foreign governments, a rate of about 3.7%.

"We are talking about tens of billions that are effectively being leached from our vital public services by a super-rich elite that holds the taxation system and the rest of us in contempt", said British politician Jeremy Corbyn. That maneuver lets the companies avoid paying hefty taxes they could face by bringing the cash back to the US.

Margrethe Vestager, the competition commissioner, has asked the Irish authorities for details of Apple's tax structure over the past two and a half years.

But Apple has come under fire both in the USA and the European Union for its tax practices. President Trump has said US businesses are getting a bad deal under current rules.

Apple CEO Tim Cook in May 2013 testified before Congress about his company's tax practices.

He did say that Apple had told regulators - in the United States and Ireland and at the European Commission - about the reorganization of its Irish subsidiaries.

The disclosures come on the heels of last week's proposals by Republican lawmakers to provide several new tax benefits for multinational companies, including cutting the federal corporate income tax rate to 20 percent from 35 percent. As a result, the European Union slapped Apple with a $14.5 billion tax bill in mid-2016.

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.

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