Through a complex assembly of subsidiaries, Apple removed largely the income tax that would be payable in the United States and in other countries, especially in Europe and especially in France . Tim Cook, CEO, is called upon to explain to the U.S. Senate.
The
Californian group Apple, maker of the iPhone and iPad, developed a
convoluted network of offshore entities to evade taxes on profits, some
of which are located in Ireland, for example, where the tax rate is low.
Three of its subsidiaries are also covered by any country for the collection of taxes. This
is to avoid paying tens of billions of dollars in taxes in the United
States and elsewhere, according to a document issued by a subcommittee
of the U.S. Senate. The
latter has called Apple CEO Tim Cook, and two other leaders of the
California-based company to appear before it on Tuesday, May 21 at
Washington.
According to the subcommittee that looked at this issue, a subsidiary of Apple has paid no income tax in any country in the past five years, although it reported net earnings 30 billion between 2009 and 2012. Another was submitted in Ireland to a tax rate of one-tenth of 1% or less in 2009, 2010 and 2012, which is well below the tax rate of 12% normally practiced in the countries. Apple has negotiated a lower rate of 2% with the Irish government, but in some cases, the California group even manages to escape it. In a briefing yesterday, members of the subcommittee to the original report did not accuse Apple of illegal actions, but said they had never seen before mounting avoidance offshore tax comparable efforts by Apple.
The Holy Grail of tax optimization
The group led by Tim Cook evades taxation by transferring its Irish subsidiaries intellectual property developed largely in the United States, allowing him to pay considerably less than it should. Not content to transfer its profits to destinations in low taxes, Apple sought the Holy Grail of tax optimization, stated Senator Carl Levin, chairman of the subcommittee that focused on this issue. "It has created offshore entities holding tens of billions of dollars, while pretending being tax resident anywhere," he pointed. For John McCain, Republican Senator from Arizona, the company Apple is one of those who evade the taxation in the largest proportions in the United States, so blatant and outrageous.
In a statement sent to the U.S. Senate, Apple claims not to resort to tricks to avoid paying taxes. If he has significant liquidity abroad is because it sells most of its products outside the United States, he says in substance. The California group says it supports tens of thousands of jobs in the United States and believes that his country is already paying an "extraordinary" amount in taxes. He claims to have paid about a dollar for every 40 dollars of corporate taxes collected in the United States last year. An amount that the subcommittee considers oversized society.
Apple also dodge paying taxes in France
According to the group led by Tim Cook, the Irish subsidiary of Apple Operations International (AOI) does not reduce it must tax the United States. "Dividends distributed through our affiliates internationally, including AOI, are not subject to tax on the profits of companies in the United States," he wrote. He added that the three Irish subsidiaries are not American companies because they are not based in the United States, but they are not Irish, because the management teams of these subsidiaries are not installed Ireland.
However, the Senate report said that by managing almost all its non-US sales through these three structures, Apple avoids paying taxes on sales in other countries, including France, the United Kingdom and Germany. With less than 2% of all profits made abroad, the company has the means to develop a sophisticated to avoid paying taxes in the United States mounting, consider the U.S. Senate.
The
Californian group Apple, maker of the iPhone and iPad, developed a
convoluted network of offshore entities to evade taxes on profits, some
of which are located in Ireland, for example, where the tax rate is low.
Three of its subsidiaries are also covered by any country for the collection of taxes. This
is to avoid paying tens of billions of dollars in taxes in the United
States and elsewhere, according to a document issued by a subcommittee
of the U.S. Senate. The
latter has called Apple CEO Tim Cook, and two other leaders of the
California-based company to appear before it on Tuesday, May 21 at
Washington.According to the subcommittee that looked at this issue, a subsidiary of Apple has paid no income tax in any country in the past five years, although it reported net earnings 30 billion between 2009 and 2012. Another was submitted in Ireland to a tax rate of one-tenth of 1% or less in 2009, 2010 and 2012, which is well below the tax rate of 12% normally practiced in the countries. Apple has negotiated a lower rate of 2% with the Irish government, but in some cases, the California group even manages to escape it. In a briefing yesterday, members of the subcommittee to the original report did not accuse Apple of illegal actions, but said they had never seen before mounting avoidance offshore tax comparable efforts by Apple.
The Holy Grail of tax optimization
The group led by Tim Cook evades taxation by transferring its Irish subsidiaries intellectual property developed largely in the United States, allowing him to pay considerably less than it should. Not content to transfer its profits to destinations in low taxes, Apple sought the Holy Grail of tax optimization, stated Senator Carl Levin, chairman of the subcommittee that focused on this issue. "It has created offshore entities holding tens of billions of dollars, while pretending being tax resident anywhere," he pointed. For John McCain, Republican Senator from Arizona, the company Apple is one of those who evade the taxation in the largest proportions in the United States, so blatant and outrageous.
In a statement sent to the U.S. Senate, Apple claims not to resort to tricks to avoid paying taxes. If he has significant liquidity abroad is because it sells most of its products outside the United States, he says in substance. The California group says it supports tens of thousands of jobs in the United States and believes that his country is already paying an "extraordinary" amount in taxes. He claims to have paid about a dollar for every 40 dollars of corporate taxes collected in the United States last year. An amount that the subcommittee considers oversized society.
Apple also dodge paying taxes in France
According to the group led by Tim Cook, the Irish subsidiary of Apple Operations International (AOI) does not reduce it must tax the United States. "Dividends distributed through our affiliates internationally, including AOI, are not subject to tax on the profits of companies in the United States," he wrote. He added that the three Irish subsidiaries are not American companies because they are not based in the United States, but they are not Irish, because the management teams of these subsidiaries are not installed Ireland.
However, the Senate report said that by managing almost all its non-US sales through these three structures, Apple avoids paying taxes on sales in other countries, including France, the United Kingdom and Germany. With less than 2% of all profits made abroad, the company has the means to develop a sophisticated to avoid paying taxes in the United States mounting, consider the U.S. Senate.
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