Apple relocated overseas cash to Jersey tax haven, leaked docs reveal

Chelsea West
November 8, 2017

The statement did not respond to speculation in this and other media outlets involved with the Paradise Papers project, that Apple has used Ireland's capital allowances regime to avoid having to pay tax on massive profits being booked through Ireland.

Apple boss Tim Cook stressed at the time that the company paid the tax it owed.

It has been discovered that Apple made changes to where their operations were run from and have now chosen Jersey.

It said it remains the world's largest taxpayer, paying about $35bn (£26bn) in corporation tax over the past three years, that it had followed the law and its changes "did not reduce our tax payments in any country".

Apple said that reforming the global tax system to make it simpler is "essential" and needed to "remove the current tug of war between countries over tax payments".

According to Apple, the debate over its taxes is not about how much it owes, but where it is owed.

Instead of paying Irish corporation tax of 12.5%, or the U.S. rate of 35%, Apple's avoidance structure helped it reduce its tax rate on profits outside of the United States to the extent that its foreign tax payments rarely amounted to more than 5% of its foreign profits, and in some years dipped below 2%. The Irish government expanded its tax deductions for companies that move rights to intellectual property, including patents and trademarks, into Ireland.

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A new trove of financial documents have been leaked demonstrating that companies like Apple and Nike are using tax havens in the Carribean and Europe to save billions of dollars for the wealth elite.

A company spokesman told the Times that the company told regulators in the US and European Commission of the reorganization of its Irish subsidiaries at the end of 2014 and said the moves did not reduce its tax payments in any country.

Apple on Monday responded to the claims, suggesting that the move was part of its corporate restructuring to comply with Ireland's rules and to ensure that "tax obligations and payments to the U.S. were not reduced".

The majority of the leaked Paradise Papers come from Appleby, which specialises in offshore accounts.

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 do not stash money on some Caribbean island". "There was no tax benefit for Apple from this change and, importantly, this did not reduce Apple's tax payments or tax liability in any country".

Apple is already embroiled in controversy with the European Commission after the latter announced that Ireland must collect about €13bn in back taxes allegedly owed from the iPhone maker.

The paper reported Apple, with the help of law firm Appleby, chose Jersey for its 0 percent corporate tax rate.

Other reports by TheSundaySentinel

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