Apple reportedly moved cash to island to avoid Irish taxes

Apple 'secretly' moved cash to Jersey to escape tax, Paradise Papers report claims

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

According to the Guardian, the Paradise Papers revealed Apple in the process of moving two subsidiaries-Apple Operations International (AOI) and Apple Sales International (ASI)-to Jersey. "We've paid over $35bn in corporate income taxes over the past three years, plus billions of dollars more in property tax, payroll tax, sales tax and VAT", it said.

The documents shared with some media outlets by the US -based International Consortium of Investigative Journalists has exposed tactics the wealthy and powerful have used to avoid taxes.

Apple said it complies with laws and supports comprehensive worldwide tax reform and a simpler tax system.

In relation to Apple's $252 billion cash pile, much of which is believed to be untaxed profits that went through its Irish subsidiaries, the statement said Apple has cash "overseas [outside the US] because that's where it sells the majority of its products".

Until 2013 Apple had funneled earnings from outside of the Americas through Ireland, which enabled the company to pay as little as 2% in corporation 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.




The documents, however, do not say why Jersey has not become the new tax home for all of the three companies.

Apple said it is the largest tax payer in the world and that it hasn't broken any laws after leaked documents showed it has been booking billions of dollars of profits through Jersey, a small island in the English Channel.

The Paradise Papers disclosures come as President Trump's administration seeks to overhaul the USA federal tax code.

Although there is no suggestion that Apple did anything illegal, the revelations will once again cast the spotlight on the tax affairs of the world's most profitable company.

Apple is one of many U.S. technology companies that have benefited from stashing cash overseas.

An Apple spokesman told the New York Times that the company told regulators in the United States and European Commission of the reorganisation of its Irish subsidiaries at the end of 2014, and said the moves did not reduce its tax payments in any country. "A coordinated legislative effort internationally will remove the current tug of war between countries over tax payments and ensure certainty of law for taxpayers". That maneuver lets the companies avoid paying hefty taxes they could face by bringing the cash back to the US.

A law professor who reviewed the documents told the newspaper that there was a "strong possibility" that Apple moved intellectual property to Ireland in a transfer worth almost $200 billion. 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". In 2014, Apple paid a tax rate of 0.005 percent.

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