Apple shifted assets to island to evade tax scrutiny

Paradise Papers India ranks 19 out of the 180 countries represented in the data in terms of the number of names

Paradise Papers India ranks 19 out of the 180 countries represented in the data in terms of the number of names

The world's most valuable company noted that it has earmarked $36 billion to cover deferred USA taxes.

The tiny island of Jersey in the English Channel has reportedly become a tax haven for companies like Apple.

In its post, Apple insisted it is the world's biggest taxpayer, paying more than $35 billion in corporate income taxes during the past three years, plus billions more in taxes on property, payrolls, sales and value-added tax, or VAT.

The documents, obtained by German newspaper Süddeutsche Zeitung, were reviewed by the International Consortium of Investigative Journalists (ICIJ), along with a number of publications, including the New York Times and the Guardian.

The company is the largest private employer in Cork and economists estimate Apple's operations in Ireland generate around $24 billion annually in salaries, taxes and investment.

The figures appear to confirm that only a small proportion of the profits being booked through Ireland by a corporation often described as the most profitable in the world, are being subjected to Irish tax.

There is an ongoing legal battle between the Irish government, Apple and the European Union to claw back more money off the tech company.

This week there have been reports over Apple tax affairs and also a number of company's after lots of documents were leaked in the Paradise Papers.

The Apple spokesman said the company paid $1.5 billion in Irish tax between 2014 and 2017 in the context of the then imminent release of the Paradise Papers, which have revealed that Apple responded to the closure of the Irish tax loophole by having two of its Irish subsidiaries take up tax residency in the offshore island of Jersey.

In August previous year, the European Commission concluded that Ireland gave Apple "illegal tax benefits" and levied the firm with an £11.6 billion in back taxes. As Breitbart News reported in June 2016: "Tech companies, including Apple, Cisco Systems and Google pay lower overseas tax rates than their non-tech US peers, such as Boeing or Johnson & Johnson".

The Paradise Papers records come from the internal files of offshore law firm Appleby and corporate services provider Estera.

Vestager has handed out huge fines worth billions of dollars to companies like Apple, Google, and Amazon in the last 18 months for matters relating to unpaid taxes and unfair competition. "We don't stash money on some Caribbean island". "The changes we made did not reduce our tax payments in any country".

Apple CEO Tim Cook slammed the ruling as "total political crap" and argued that there's "no reason for it in fact or in law". We do not depend on tax gimmicks. The company reports its effective global tax rate at 24.6 percent.

It alleges that Apple lawyers sent a questionnaire to the offshore finance firm Appleby, seeking to discover what tax havens like the British Virgin Islands, Bermuda, the Cayman Islands, Mauritius, the Isle of Man, Jersey and Guernsey could do for Apple.

Latest News