Paradise Papers reveal Apple moved bits of biz offshore

Paradise Papers reveal Apple moved bits of biz offshore

Paradise Papers reveal Apple moved bits of biz offshore

The news outlet and the non-profit investigative organization cited confidential records that were obtained by the German newspaper Suddeutsche Zeitung and shared.

As Apple came under pressure in the US and Europe about what was called the "double Irish" scheme, it enlisted offshore finance law firm Appleby to find a new place to stash cash out of the reach of tax collectors, reports said.

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.

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.

An Apple spokesman said the company hadn't engaged in any wrongdoing. For instance, the company said its 2015 corporate reorganization was "specially created to preserve its tax payments to the United States, not to reduce its taxes anywhere else". Specifically, to avoid paying $9 billion in US corporate taxes in 2012, Apple allegedly used a strategy that involved rapid transfers of cash between three offshore units with no tax "residence".

Apple eventually opted for Jersey, a British Crown Dependency off the coast of France that doesn't usually charge tax on foreign companies' profits and mostly falls outside of European Union jurisdiction.

An inquiry by the bipartisan U.S. senate committee into Apple's use of Irish subsidiaries to avoid paying billions of dollars in taxes and global pressure led to Ireland planning to crackdown on shadow companies in October 2013. Then, the company relocated its worldwide corporate structure to Jersey in the beginning of investigation.

It's worth noting that Apple's decision to move its subsidiaries isn't illegal and doesn't break any laws, but it does raise questions over the company's business practices as it continues to dodge taxes despite being one of the most profitable companies in the world.

Appleby is well-known for its efforts to help clients reduce their tax bill and helped point Apple to Jersey.

Does the news about Apple's alleged tax activities surprise you?

"As part of these changes, Apple's subsidiary which holds overseas cash became resident in the U.K. Crown dependency of Jersey, specifically to ensure that tax obligations and payments to the USA were not reduced", the company said.

Paradise Papers: Which famous figures are named in leak of secret tax details?

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

MORE: Paradise Papers: how do offshore tax avoidance schemes work?

"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 said, stating it had "paid billions of dollars in US tax on the investment income of this subsidiary".

The head of the world's biggest technology company faced a grilling in Washington over what politicians there claimed were "gimmicks" used to get around United States tax laws.

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