Apple avoids billions of dollars in offshore tax dodge
Apple has been caught dodging the tax man in the US in an offshore tax avoidance scheme.
According to a US Senate report, Apple set up offshore entities that reported a net income of $30 billion between 2009 to 2012.
Apple set up an offshore subsidiary called Apple Operations International which reported the huge income, but then did not pay any residence tax, filed no corporate income tax return and paid no corporate income taxes to any national government for the five year period, the Senate said.
The manufacturer also set up a company in Ireland where tax is low. The company, called Apple Sales International, is accused of buying Apple products from a Chinese manufacturer, then sells them on to other parts of the Apple with a large percentage on top. The Irish firm clocked up about $74 billion in profit, but the Senate said it 'may have paid little or no income taxes to any national government on the bulk of those funds'.
Apple claimed it has done nothing wrong.
Smart Chimps thinks: If we had Apple's money and Apple's lawyers and accountants, I'm sure we also would be busy stashing our money away where the tax man couldn't get it. As it is, it seems probable that there will be little the US government can do to Apple directly, as it has no doubt covered its back and has done nothing wrong, officially. But what goes around, comes around; Apple, what's that sound? Is it the echo of doors closing?