Apple Relocated Its International Cash Stockpile to Jersey

Randall Padilla
November 8, 2017

This was alleged by many to be a response to a 2015 change to tax law in Ireland, where its important subsidiaries, Apple Operations Europe (which holds its overseas income) and Apple Sales International (which used to own some of the company's IP rights) were based.

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

It alleges that Apple lawyers sent a questionnaire to the offshore finance firm Appleby, seeking to discover what tax havens like the British Virgin Islands, Bermuda, the Cayman Islands, Mauritius, the Isle of Man, Jersey and Guernsey could do for Apple.

Tax planning has helped the USA tech giant to build up a $252 billion overseas cash fund while paying an average foreign corporation tax rate of about 3.7 per cent.

The paper said Apple has $US128 billion ($A179 billion) in offshore profits not taxed by the US.

Margrethe Vestager, the European Commissioner for Competition, said she was in touch with Apple about the company's controversial tax structures - revealed in the so-called Paradise Papers this week - before the media published them. The island charges no tax on companies' profits, ICIJ reported. 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". In a statement on the company's website, Apple said it has paid $35 billion (£26 billion) in corporate income taxes over the last three years. The selective treatment allowed Apple to pay an effective corporate tax rate of 1 percent on European profits in 2003, according to the commission past year.

Until 2014 Apple's two Irish companies were seen as "stateless" for tax purposes, allowing it to pay a tax rate of as little as 0.005 per cent on non-US profits....

Apple boss Tim Cook stressed at the time that the company paid the tax it owed.

The majority of the leaked Paradise Papers come from Appleby, which specialises in offshore accounts.

It has been discovered that Apple made changes to where their operations were run from and have now chosen Jersey.

The EC then took Ireland to the European Court of Justice earlier this month when the Irish government had failed to reclaim any of the money since the order was given.

The Center for Investigative Reporting's Michael Montgomery explains how tax havens and shell corporations operate to protect the wealthy elite and the significance of the Paradise Papers. The company has resisted bringing the money back to the US because of the massive tax bill it would face.

In Budget 2014, following months when the Government here faced repeated attacks over a low corporation tax rate and its popularity with global brands such as Apple, Facebook and Google, the Government moved to rebuild its reputation overseas.

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. Apple's offshore profits aren't taxed by the United States and they're largely untouched by other governments. The taxes it pays to countries around the world are based on that principle.

Other reports by AllAboutTopnews

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