We pay all the taxes we owe, says boss Tim Cook
In another shocking financial revelation from Paradise Papers, it is now learnt that the world’s most profitable tech firm Apple has been using a secretive structure, which reportedly enables it to continue avoiding billions in taxes.
The latest claims emerge from the Paradise Papers, a huge leak of documents concerning the world of offshore finance, as they show how the tech giant sidestepped a 2013 crackdown on its controversial Irish tax practices by actively shopping around for a tax haven. It then moved the firm holding most of its untaxed offshore cash, now $252bn, to the Channel Island of Jersey, BBC stated.
Read related story: Paradise Papers: 10 shocking revelations
However, Apple claims that the new structure has not lowered its taxes. “We pay all the taxes we owe, every single dollar,” boss Tim Cook said: “We do not depend on tax gimmicks… . We do not stash money on some Caribbean island.”
The company said in a statement: “The debate over Apple’s taxes is not about how much we owe but where we owe it. As the largest taxpayer in the world we’ve paid over 35 billion dollars in corporate income taxes over the past three years, plus billions of dollars more in property tax, payroll tax, sales tax and VAT.”
The statement further said: “We believe every company has a responsibility to pay the taxes they owe and we’re proud of the economic contributions we make to the countries and communities where we do business.”
The documents also show how Apple’s two key Irish subsidiaries, Apple Operations International and Apple Sales International, were managed by Appleby’s office in Jersey until early 2016, the BBC said.
The majority of the leaked Paradise Papers come from Bermuda-based legal firm Appleby, which specialises in offshore accounts.