Report: Apple moved offshore billions to new tax havens

FILE - In this Wednesday, Jan. 4, 2017 file photo, a logo of the Apple company is pictured in Berlin, Germany. European Union Commissioner Margrethe Vestager announced Wednesday, Oct. 4, 2017 it also will take Ireland to court for failing to collect a massive 13 billion euros ($15.3 billion) in taxes from Apple Inc., arguing that the company had profited from a system allowing it to escape most of its taxes the EU felt were due. (AP Photo/Michael Sohn, File)

Associated Press

 

Apple revamped its overseas subsidiaries to take advantage of tax loopholes on the European island of Jersey after a crackdown on Ireland’s loose rules began in 2013, according to The New York Times and the International Consortium of Investigative Journalists.

The news outlet and the nonprofit investigative organization cited confidential records obtained by the German newspaper Suddeutsche Zeitung. The cache of 13 million secret documents came from Appleby, a Bermuda-based law firm that helps businesses and wealthy individuals find tax shelters.

The moves came after a U.S. Senate subcommittee found in 2013 Apple had avoided tens of billions of dollars in taxes by using overseas havens. The paper said Apple has $128 billion in offshore profits not taxed by the U.S.

By 2015, Apple had moved the tax home of two Irish subsidiaries to Jersey, a self-governing island in the English Channel.

Apple said in response the reports contained various “inaccuracies.” For instance, the company said its 2015 corporate reorganization was “specially designed to preserve its tax payments to the United States, not to reduce its taxes anywhere else.”

The Cupertino, Calif.-based company said it was the largest taxpayer in the world, paying $35 billion in corporate income tax over the last three years, including $1.5 billion in Ireland.

The company said it told regulators in the U.S. and European Commission of the reorganization of its Irish subsidiaries in 2015.

 

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