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

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

The world's most valuable company noted that it has earmarked $36 billion to cover deferred US taxes. Then, the company relocated its worldwide corporate structure to Jersey in the beginning of investigation.

Together with Apple Operations International and Apple Sales International, the company made up the three Irish firms criticised by U.S. senators in 2013 for being "ghost companies".

In its post, Apple insisted it is the world's biggest taxpayer, paying more than $35 billion in corporate income taxes during the past three years, plus billions more in taxes on property, payrolls, sales and value-added tax, or VAT.

The NYT and the International Consortium of Investigative Journalists cited confidential records that were obtained by the German newspaper Suddeutsche Zeitung and shared.

"We have taken an interest in getting to know how Apple is organised now and we did that before the publication of the Paradise papers", Vestager said.

"The debate over Apple's taxes is not about how much we owe but where we owe it".

Instead of paying Irish corporation tax of 12.5%, or the U.S. rate of 35%, Apple's avoidance structure helped it reduce its tax rate on profits outside of the United States to the extent that its foreign tax payments rarely amounted to more than 5% of its foreign profits, and in some years dipped below 2%.

Up until 2014, the tech company had been exploiting a loophole in tax laws in the U.S. and the Republic of Ireland known as the "double Irish".

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Apple moved the tax home of two Irish subsidiaries to Jersey, a self-governing island in the English Channel between Britain and France, and also made Ireland the tax home of a different European subsidiary.

IT giant Apple reacted to global accusations of tax avoidance by secretly shifting key parts of its overseas subsidiaries to Jersey, according to an analysis of the leaked Paradise Papers documents.

The Paradise Papers disclosures come as President Trump's administration seeks to overhaul the USA federal tax code. The European Commission (EC) calculated the rate of tax for one of Apple's Irish companies for one year had been just 0.005 per cent.

- USA sportswear giant Nike used a loophole in Dutch fiscal law to reduce, via two companies based in the Netherlands, its tax rate in Europe to just two percent compared to the 25 percent average for European companies.

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

In a statement, Apple said that it paid "every dollar it owes in every country around the world" and said changes to its corporate structure in 2015 were to preserve tax payments in the USA rather than lower them elsewhere.

Apple CEO Tim Cook slammed the ruling as "total political crap" and argued that there's "no reason for it in fact or in law". That maneuver lets the companies avoid paying hefty taxes they could face by bringing the cash back to the US. That allowed the Isle of Jersey to cut its corporate tax rate to zero percent a decade ago.

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