Paradise Papers: Apple moved offshore tax haven to Jersey after Ireland crackdown

08 November, 2017, 01:13 | Author: Manuel Hopkins
  • Apple 'set up a secret structure in Jersey to avoid paying billions of pounds in tax'

That then led Apple lawyers to look at six offshore tax havens that might allow an Irish subsidiary to "conduct management activities without being subject to taxation in these jurisdictions", according to the "Paradise Papers".

Apple's actions were not illegal and the companies have since moved out of Jersey. Specifically, to avoid paying $9 billion in USA corporate taxes in 2012, Apple allegedly used a strategy that involved rapid transfers of cash between three offshore units with no tax "residence".

Coverage of the documents is being coordinated by the International Consortium of Investigative Journalists, which has shared them with major media outlets including The New York Times, The Guardian and the BBC.

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". It said it pays an effective tax rate of 21 per cent on foreign earnings.

Up until 2014, the tech company had been exploiting a loophole in tax laws in the USA and the Republic of Ireland known as the "double Irish".

New documents made public as part of the release of the Paradise Papers revealed that Apple moved two of its subsidiary companies to the island of Jersey in order to avoid tax obligations and or regulations.

Despite being invited to do so, the corporation did not respond to speculation that Apple Operations Europe, which is now tax-resident in Ireland, may have spent tens of billions of euro, and possibly well in excess of €100 billion, on intellectual property which it brought from Apple subsidiaries now based in zero-taxed Jersey.

Carter Page met with Russian government officials during 2016 trip
But he downplayed the significance of the meetings, telling the Times he had "a very brief hello to a couple of people". And people were asking him about this meeting back in 2016 where former campaign aide George Papadopoulos was present.

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 said it has operated within the rules of the law and that it's paid more tax than any other company or individual. "We do not stash money on some Caribbean island".

Apple, as the highest taxpayer over the world knows that every corporation comes with a responsibility of paying its taxes, while the company pays each dollar that it owes to every country in the world. It said the move was made "specifically to ensure that tax obligations and payments to the US were not reduced".

The European Union is now trying to force Ireland to collect €13 billion ($15 billion) in unpaid taxes from Apple.

An investigation by the European Commission concluded the rate of tax for one of Apple's Irish companies for one year had been just 0.005%.

The 13 million documents that make up the so-called Paradise Papers were leaked - some say hacked - from specialist law firm Appleby, which has an office on Jersey.



Broadcom offers to acquire Qualcomm for $70 per share
However, according to the FT , Qualcomm is set to reject the deal, raising the prospect of a fight for the future of the company. The company has also got commitment letter for $5 billion debt financing from private equity Silver Lake Partners.

Buccaneers QB Jameis Winston facing 'at least two weeks' out
The first overall pick in the 2015 draft has made 40 consecutive starts to begin his National Football League career. Bucs head coach Dirk Koetter discussed the decision in his weekly, exclusive "Koetter's Korner" interview.

Kohli becomes 2nd highest run-getter in T20Is
NZ opener Colin Munro , in particular, batted majestically and was unconquered on a truly regal 109 (58 balls, 7x4, 7x6). Kohli recently includes in the list of most valuable player in term of their worth as skipper get ahead of Messi.

At least 27 thought killed in USA church shooting
During its Sunday morning worship service, a Southern Baptist church in rural Texas became America's latest mass shooting . First responders converged on the church in the small town and helicopters are taking victims to hospitals.

NYC Marathon winners: Flanagan 1st American since 1977
Keitany, who finished second with a time of 2:27:54, hugged Flanagan, who had the American flag already draped over her shoulders. An emotional Flanagan after her NYC Marathon win, the first by an American woman in 40 years.

Chennai rains: Residents reel under monsoon fury; schools shut, farming, fishing affected
Authorities in Tamil Nadu say that schools and colleges in Chennai and other parts of coastal state will remain closed on Friday. Many suburban areas of Chennai continued to remain submerged, even as the water level in various areas was slowly receding.

Lebanese Prime Minister Saad Hariri Announces Sudden Resignation
Several Hezbollah members are being tried in absentia for the killing by a UN-backed tribunal in The Hague, Netherlands. He earlier said that those who cooperate with Hezbollah must be "punished".

Mobile Sprint merger may be saved with last minute compromise
But T-Mobile lobbed in a last minute counter offer and there was hope again that a deal could be salvaged. With the new Trump administration, it was thought regulators might be more relaxed.

UK Defence Secretary Michael Fallon resigns amid Westminster 'sex pest' scandal
Michael Fallon admitted his behavior had 'fallen below the high standards that we require of the armed forces'. It is due to resume talks on Britain's European Union departure in Brussels, Belgium, next week.

Bowe Bergdahl's Sentence: No Prison Time
He said he walked away from his post in remote Afghanistan to alert commanders of issues at the post. Bergdahl was released in May 2014 in a controversial exchange for five Guantanamo Bay detainees.