Apple shifts profits to Jersey

Apple shifts profits to Jersey

Apple shifts profits to Jersey

Apple, which now has $252 billion of its cash outside the USA, said in a statement Monday that it adjusted its corporate structure when Ireland changed its tax laws in 2015. Apple has said no operations were moved from Ireland.

Apple started booking profits through Jersey after the Irish government started to clamp down on the company's tax affairs in Ireland.

The Cupertino, California-based company said it was the largest taxpayer in the world, paying $35 billion in corporate income tax over the last three years, including $1.5 billion in Ireland.

The documents, obtained by German newspaper Süddeutsche Zeitung, were reviewed by the International Consortium of Investigative Journalists (ICIJ), along with a number of publications, including the New York Times and the Guardian.

"At Apple we follow the laws, and if the system changes, we will comply".

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.

Instead of paying Irish corporation tax of 12.5%, or the USA rate of 35%, Apple's avoidance structure helped it reduce its tax rate on profits outside of the U.S. 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%.

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.

Paradise Papers documents also show details of offshore deals involving Queen Elizabeth II, the US commerce secretary, a fundraiser for Canada's prime minister and others.

Apple didn't immediately comment to The Associated Press.

Apple said the new structure did not reduce tax payments in any country and "ensured that our tax obligation to the United States was not reduced".

In a statement, Apple said that it paid "every dollar it owes in every country around the world" and said changes to its corporate structure in 2015 were to preserve tax payments in the U.S. rather than lower them elsewhere.

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.

"The changes we made did not reduce our tax payments in any country", Josh Rosenstock told the Times. That maneuver lets the companies avoid paying hefty taxes they could face by bringing the cash back to the US.

The cache of 13.4 million secret documents came largely from Appleby, a Bermuda-based law firm that helps businesses and wealthy individuals find tax shelters. The company reports its effective global tax rate at 24.6 percent.

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