May 22, 2013

Behind Apple’s $17m daily tax dodge: loopholes and an Irish jig

Plenty of Apple’s biggest money makers don’t pay taxes to any government, and the ones that do can pay as little as 0.05% on profits. The US loopholes and Ireland haven used by the tech giant.

Myriam Robin — Media Reporter

Myriam Robin

Media Reporter

This morning in Washington, Apple chief executive Tim Cook faced a Senate committee grilling. He was there to answer the claims of the permanent subcommittee on investigations, which had just tabled a report into exactly how Apple ended up paying just $US14.2 billion in American state and federal taxes last year.

“We pay all the taxes we owe — every single dollar,” Cook told the Senate. “We don’t depend on tax gimmicks.”

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4 thoughts on “Behind Apple’s $17m daily tax dodge: loopholes and an Irish jig

  1. Andybob

    Lucky they don’t depend on tax gimmicks. Because that kind of thing can really damage a corporate reputation and result in shareholder class actions against executives.

  2. Mark from Melbourne

    This is not new or exclusive to Apple or US companies. Packer had his tax arrangements set up in a similar scheme but between UK and HK back in the 980’s. All you need is a clever tax lawyer(s) and enough potential tax liability to make it worthwhile.

    Just take a look at News annual report and note the subsidiaries listed in tax havens.

    And reputedly GE hasnt paid any tax for years…

  3. Peter Evans

    This isn’t news, and it’s been going on for years. Pretty well every American tech company, even fairly small ones (inc the one I work for) which does sales outdoes the US does the Irish tax thing. The nation state is, at a fundamental level, predicated on a mercantilist view of the world. That world doesn’t exist. These tax shenanigans are a very predictable outcome.

    By the way, Apple is the largest single private employer in Cork, Ireland.

  4. cheesus

    Pretty weak one-sided article. Also as others have pointed out, this is not new or unique.

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