Paradise Papers: Apple moved offshore tax haven to Jersey after Ireland crackdown

Tax avoidance issues best dealt with by OECD - Varadkar

Apple 'secretly' moved cash to Jersey to escape tax, Paradise Papers report claims

"Under this arrangement, the MacBook-maker has continued to enjoy ultra-low tax rates on most of its profits and now holds much of its non-US earnings in a $252 billion mountain of cash offshore". As Breitbart News reported in June 2016: "Tech companies, including Apple, Cisco Systems and Google pay lower overseas tax rates than their non-tech US peers, such as Boeing or Johnson & Johnson".

The documents, obtained by German newspaper Süddeutsche Zeitung, were reviewed by the International Consortium of Investigative Journalists (ICIJ), along with a number of publications, including the New York Times and the Guardian.

Apple on Monday responded to the claims, suggesting that the move was part of its corporate restructuring to comply with Ireland's rules and to ensure that "tax obligations and payments to the U.S. were not reduced". After a lengthy inquiry, it found that the company had avoided tens of billions of dollars in taxes by shifting profit into Irish subsidiaries that the panel's chairman called "ghost companies".

Leaked documents have revealed how Apple went shopping around for a tax haven in 2014.

Until 2014, Apple had been exploiting loopholes - known as "double Irish" - which allowed it to push all its sales outside of the USA through Irish subsidiaries that ran up little or no tax.

"We strongly support efforts from the global community toward comprehensive worldwide tax reform and a far simpler system". We do not depend on tax gimmicks.

Appleby eventually settled on relocating two Apple subsidiaries to the law firm's office in Jersey, a small island in the English Channel.

Apple has now released a press release in response to the recent allegations, they have said that they have not paid any less tax as a result of the changes, you can see a statement from the company below.

Paradise Papers leaks exposed today the North American technology company Apple, the sports company Nike and the Argentine minister of finance, Luis Caputo.

"US multinational firms are the global grandmasters of tax avoidance schemes that deplete not just USA tax collection but the tax collection of most every large economy in the world", former corporate tax adviser Edward Kleinbard was quoted as saying by the NYT.

An inquiry by the bipartisan USA senate committee into Apple's use of Irish subsidiaries to avoid paying billions of dollars in taxes and worldwide pressure led to Ireland planning to crackdown on shadow companies in October 2013. "We do not stash money on some Caribbean island". "A coordinated legislative effort internationally will remove the current tug of war between countries over tax payments and ensure certainty of law for taxpayers".

MORE: Paradise Papers: how do offshore tax avoidance schemes work? In 2014, Apple paid a tax rate of 0.005 percent.

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