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Apple's 'Jersey tax avoidance links' to be investigated

08 November, 2017, 01:09 | Author: Melinda Barton
  • Apple 'set up a secret structure in Jersey to avoid paying billions of pounds in tax'

Apple has accumulated more than $128 billion (£97.4 billion) in profit offshore, according to The New York Times, which says the figure is likely to be much higher.

Together with Apple Operations International and Apple Sales International, the company made up the three Irish firms criticised by United States senators in 2013 for being "ghost companies".

It said it remained the world's largest taxpayer, paying about $35bn (NZ$49bn) 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".

The NYT and the International Consortium of Investigative Journalists cited confidential records that were obtained by the German newspaper Suddeutsche Zeitung and shared.

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

Although it was aimed at Double Irish structures, the potential rule change would ban all Irish companies from claiming tax residency in a tax haven. It said it pays an effective tax rate of 21 per cent on foreign earnings. The Apple back taxes are yet to be reclaimed by the Irish government but the Google bill has been settled, Vestager said.

A trove of documents known as the "Paradise Papers" reveals that the Mercedes driver as well as wealthy peers including Bono, Apple, Nike and even the Queen avoid tax through a series of secret offshore deals.

Apple is alleged to have sidestepped a 2013 Irish crackdown on tax avoidance by moving one of its most valuable subsidiaries to the Channel Island of Jersey.


It said reports inaccurately state that it is avoiding tax in the US. "We do not stash money on some Caribbean island".

Apple has now released a press release in response to the recent allegations, they have said that they have not paid any less tax as a result of the changes, you can see a statement from the company below.

"Additional tax is then also due in the USA when the earnings are repatriated", the statement said.

Apple came under pressure in 2013 in the US Senate, when CEO Tim Cook was forced to defend its tax system.

The European Commission has said Apple should pay €13 billion, plus interest, to Ireland, on untaxed income earned by Irish-incorporated Apple subsidiaries that were for a period of years stateless for tax purposes.

"I have been asking for an update on the arrangement made by Apple, the recent way they have been organized, in order to get the feeling whether or not this is in accordance with our European rules but that remains to be seen", Vestager told a news briefing at an worldwide tech summit in Lisbon.

In advance of its move to Jersey, Apple retained a Bermuda-based law firm called Appleby to provide advice on where to move its offshore tax shelter. In 2014, Apple paid a tax rate of 0.005 percent.

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