'Paradise Papers' Out Apple for Tax Shelter in Jersey Isle

'Paradise Papers' Out Apple for Tax Shelter in Jersey Isle

According to the documents leaked in the Paradise Papers, Apple started looking for a new place to store its cash in early 2014 as Ireland moved to change its corporate tax law.

The NYT and the International Consortium of Investigative Journalists cited confidential records that were obtained by the German newspaper Suddeutsche Zeitung and shared. "In fact, our payments to Ireland increased significantly and over the past three years we've paid $1.5bn in tax there - 7% of all corporate income taxes paid in that country", said an Apple statement.

Apple said this was to ensure that tax obligations and payments to the USA were not reduced.

The regulators ordered Apple to pay Ireland an extra €13 billion in tax, both Apple and Ireland are appealing this.

Five months after Cook's testimony, Irish officials began to crack down on the tax structure Apple had exploited.

Until 2013 Apple had funneled earnings from outside of the Americas through Ireland, which enabled the company to pay as little as 2% in corporation tax.

'It is not satisfactory for a foreign registered company to claim tax residence in Jersey without demonstrating a substance here.

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Apple has accumulated more than $128 billion of profit offshore, and probably much more, that is not taxed by the United States and hardly touched by any other country.

"We are talking about tens of billions that are effectively being leached from our vital public services by a super-rich elite that holds the taxation system and the rest of us in contempt", said British politician Jeremy Corbyn. We do not depend on tax gimmicks.

Mr Cook responded defiantly: "We pay all the taxes we owe, every single dollar". "The changes we made did not reduce our tax payments in any country", he said.

In recent years, American high-tech company Apple has been avoiding taxes by shifting parts of the company's operations to Jersey Island in the English Channel, after its previous tax haven, Ireland, tightened regulations, the so-called Paradise Papers have revealed. The selective treatment allowed Apple to pay an effective corporate tax rate of 1 percent on European profits in 2003, according to the commission previous year. That allowed the Isle of Jersey to cut its corporate tax rate to zero percent a decade ago.

Apple said it believes comprehensive global tax reform is essential, and that it has for many years been advocating for simplification of the tax code. The tax-avoidance scheme involved allegedly transferring tech patent portfolios to Ireland; then allegedly using Irish and Dutch subsidiaries in the Caribbean to shift profits to low-tax jurisdictions; and then allegedly moving those profits on to virtually "no tax" jurisdictions.

In advance of its move to Jersey, Apple retained a Bermuda-based law firm called Appleby to provide advice on where to move its offshore tax shelter.

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