Apple Reportedly Shifted Billions of Dollars to Small Island of Jersey Amid Tax Crackdown [Updated]

apple sidestepped 2013 crackdown on controversial irish tax structure moving majority of offshore cash holdings small island of jersey, self-governed territory loose ties united kingdom, according leaked financial documents obtained the new york times , bbc.

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the island of jersey via chamber of commerce​

so-called paradise papers, sourced offshore tax law firm appleby, reveal apple's 2 key irish subsidiaries managed appleby's office in jersey 2015 until 2016. apple chose jersey after exploring several potential tax havens, such bermuda , cayman islands.

apple said made regulators in united states , ireland, , european commission, aware reorganization of irish subsidiaries, , added changes haven't reduced tax bill.

"the changes made did not reduce our tax payments in country," apple spokesperson told the new york times. "at apple follow laws, , if system changes comply. support efforts global community toward comprehensive international tax reform , far simpler system."

apple turned jersey after european officials began crack down on so-called "double irish" tax structure apple had exploited.

"double irish" tax loophole allows multinational corporations funnel revenue through irish subsidiary, in turn sends money irish subsidiary has residency in tax haven. in nutshell, practice has enabled apple save billions of dollars in taxes around world.

european commission found apple paid between 0.005 percent , 1 percent in taxes in ireland 2003 through 2014, compared country's headline 12.5 percent corporate tax rate. apple ceo tim cook said commission's ruling against apple "total political crap" , tax rates "false number."

when questioned united states senate investigative subcommittee in 2013, cook said "we pay taxes owe." added apple doesn't "stash money on caribbean island."

while true @ time, it's clear apple exploring similar options part of tax minimization efforts.

"this how works: close 1 tax shelter, , else opens up," said reuven avi-yonah, director of international tax program @ university of michigan law school. "it goes on endlessly."

cook has made clear apple willing repatriate of offshore cash holdings united states, said tax reform "sorely needed" first. u.s. president donald trump has proposed lowering headline corporate tax rate 20 percent, down 35 percent currently.

update: apple afternoon shared press release entitled "the facts apple's tax payments," has been written in response today's reports. apple says there several inaccuracies being circulated , aiming correct them.

quote

"the debate on apple's taxes not how owe owe it. largest taxpayer in world we've paid on $35 billion in corporate income taxes on past 3 years, plus billions of dollars more in property tax, payroll tax, sales tax , vat. believe every company has responsibility pay taxes owe , we're proud of economic contributions make countries , communities business.

under current international tax system, profits taxed based on value created. taxes apple pays countries around world based on principle. vast majority of value in our products indisputably created in united states -- our design, development, engineering work , more -- majority of our taxes owed us.

when ireland changed tax laws in 2015, complied changing residency of our irish subsidiaries , informed ireland, european commission , united states. changes made did not reduce our tax payments in country. in fact, our payments ireland increased , on last 3 years we've paid $1.5 billion in tax there -- 7 percent of corporate income taxes paid in country. our changes ensured our tax obligation united states not reduced.

understand change tax system multinationals' taxes spread differently across countries operate, , know reasonable people can have different views how should work in future. @ apple follow laws, , if system changes comply. support efforts global community toward comprehensive international tax reform , far simpler system, , continue advocate that."

click expand...

the release provides details apple has reiterated multiple times in past, such position largest taxpayer in world , fact holds overseas cash because that's majority of products sold. apple again says comprehensive international tax reform "is essential" , continues advocate simplification of tax code.

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article link: apple reportedly shifted billions of dollars small island of jersey amid tax crackdown [updated]

 

can blame them? i'd same.

 

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