Newsdeck

Apple tax avoidance plan laid bare in leaked documents

By AFP 6 November 2017

Apple shifted much of its offshore wealth in the face of a tax crackdown on a haven it had in Ireland, according to reporting Monday on the Paradise Papers on the iPhone maker's tax strategy.

After the US technology colossus stated publicly in 2013 that it was paying its proper share of taxes, it moved the bulk of its untaxed overseas cash to the Channel Islands jurisdiction Jersey, the New York Times and BBC reported based on a once-secret cache of documents referred to as the Paradise Papers.

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.

Prior to 2014, California-based Apple had taken advantage of tax rules to route overseas revenue through Irish subsidiaries to minimize taxes.

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 reach of tax collectors, according to reporting.

Apple settled on Jersey, a dependency of the United Kingdom, which had a tax rate of zero for foreign companies, reports indicated.

Emails cited in coverage indicated Apple wanted the arrangement kept secret.

Apple is now facing an EU demand for some $14.5 billion in taxes based on a ruling that its tax structure in Ireland amounted to illegal state aid.

Appleby was cited as the source of much of the leaked financial data that has resulted in searing revelations in recent days.

Apple did not reply to an AFP request for comment, but has previously gone on record saying it pays all taxes required by law and that the amount it substantial.

The documents show details of offshore deals involving a US cabinet member, a fundraiser for Canada’s prime minister, Queen Elizabeth II and others. DM

Gallery

Support DAILY MAVERICK & get FREE UBER vouchers every month

An increasingly rare commodity, quality independent journalism costs money, though not nearly as much as its absence can cost global community. No country can live and prosper without truth - that's why it matters.

Every Daily Maverick article and every Scorpio exposé is proof of our dedication to this unshakeable mission. Investing in our news media is by far the most effective investment into South Africa's future.

You can support Independent and Investigative journalism by joining Maverick Insider. If you contribute R150 or more per month you will receive R100 back in UBER vouchers. EVERY MONTH until October 2019.

So, if you'd like to help and do something meaningful for yourself and your country, then sign up to become a Maverick Insider. Together we can Defend Truth.


Treasury Probe 3

Report tracks amazing growth of Eskom finance boss Anoj Singh’s bank account

By Ferial Haffajee

Game publisher Electronic Arts has been voted "The Worst Company in America" two years in a row 2012 and 2013.