Tuesday, 21 November, 2017

Paradise Papers: Apple's secret tax bolthole revealed

Apple reportedly moved cash to island to avoid Irish taxes Jersey Tax Haven: Apple Used Channel Island To Avoid US Taxes
Heather Davidson | 08 November, 2017, 01:10

Margrethe Vestager said she had spoken to Apple about the controversial tax structures highlighted in the Paradise Papers.

Apple's actions were not illegal and the companies have since moved out of Jersey.

It said it remained the world's largest taxpayer, paying about $35bn (NZ$49bn) in corporation tax over the past three years, that it had followed the law and its changes "did not reduce our tax payments in any country".

The news outlet and the non-profit investigative organization cited confidential records that were obtained by the German newspaper Suddeutsche Zeitung and shared.

Apple said it believes comprehensive worldwide tax reform is essential, and that it has for many years been advocating for simplification of the tax code.

The response came after Subcommittee Chairman Carl Levin said that Apple had created "the Holy Grail of tax avoidance" schemes by forming a "double-Irish-flip". Some of the tech giants had allegedly paid corporate tax rates as low as Apple's 0.00045 percent, versus nearly 29 percent for US non-tech firms.

The incentive, known as a capital allowance, offered Irish companies big tax deductions over many years if they spent money buying expensive intangible property.

A new trove of financial documents have been leaked demonstrating that companies like Apple and Nike are using tax havens in the Carribean and Europe to save billions of dollars for the wealth elite.

Apple moved two of its subsidiaries from Ireland to Jersey in order to minimise its tax liabilities following the EU-led crackdown on low-tax Ireland, according to the latest releases from the so-called "Paradise Papers".

Paradise Papers: Which famous figures are named in leak of secret tax details?

Ireland's approach to Apple's tax payments has been under scrutiny by the European Commission since 2014, and the state was ordered past year to reclaim €13bn in illegal tax benefits from the company.

Apple is one of many United States technology companies that have benefited from stashing cash overseas. Apple's offshore profits aren't taxed by the USA and they're largely untouched by other governments.

"Additional tax is then also due in the U.S. when the earnings are repatriated", the statement said.

Earlier this year, the European Commission revealed its intention to issue a noncompliance action against Ireland for failure to collect tax from Apple.

It alleges that Apple lawyers sent a questionnaire to the offshore finance firm Appleby, seeking to discover what tax havens like the British Virgin Islands, Bermuda, the Cayman Islands, Mauritius, the Isle of Man, Jersey and Guernsey could do for Apple.

"Apple pays tax at Ireland's statutory 12.5 per cent", Apple said in a statement on Monday night in response to worldwide coverage of its tax affairs in this and other media outlets. In 2014, Apple paid a tax rate of 0.005 percent.

Recommended

  • Emenalo: Leaving Chelsea Difficult But Right Decision

    Emenalo: Leaving Chelsea Difficult But Right Decision

    We will now be reviewing our management structure, and Michael will be a part of that process as we look ahead'. This past summer, Chelsea lost out on several transfer targets including Romelu Lukaku.
    IOS 11.2 Beta 2 Now Available for All Devices - Download Now

    IOS 11.2 Beta 2 Now Available for All Devices - Download Now

    The glitch arrived with iOS11.1, which was released last week, bringing with it hundreds of new emojis. When you type the letter "I", before hitting Space, tap the "I" that appears in the box.
    Washington Wizards Three Takeaways: Wizards Lose in a Shootout with the Cavaliers

    Washington Wizards Three Takeaways: Wizards Lose in a Shootout with the Cavaliers

    All that talk about being the best team ended after the Wizards gave up 74 points in the first half. So that's kind of how we go back and forth.
  • Markets Brace for Potential Fallout From Arrest of Billionaire Investor Saudi Prince

    Markets Brace for Potential Fallout From Arrest of Billionaire Investor Saudi Prince

    Saudi officials described Saturday's arrests as the result of an investigation by a newly created anti-corruption committee. The new body was given broad powers to investigate cases, issue arrest warrants and travel restrictions, and seize assets.
    Gunman kills at least 25 at Texas church

    Gunman kills at least 25 at Texas church

    The number of people killed and injured has not been confirmed by authorities, but children are believed to be among the victims. Mr Silva said he had been approached by a woman who said she had two loved ones at the church who were shot.
    Trump campaign aide met Russian officials in 2016: NY Times

    Trump campaign aide met Russian officials in 2016: NY Times

    Sessions's participation in the gathering was detailed in court documents released Monday by special counsel Robert Mueller III. The revelations that Sessions may have made false statements under oath riled many top Democrats, especially Franken.
  • 'Black Widow' sentenced to death in Japan

    'Black Widow' sentenced to death in Japan

    First diagnosed with mild dementia in 2016, Kakehi said she had trouble remembering events shortly after her arrest. It was the second-longest court case involving a jury since Japan introduced a joint judge-jury system in 2009.
    Google Search and Maps Now Show You Estimated Wait Times at Restaurants

    Google Search and Maps Now Show You Estimated Wait Times at Restaurants

    This could come in particularly handy for those bars and restaurants that don't take reservations (looking at you, Monk's ). Wait times will initially be available for mobile and desktop search before becoming a Google Maps feature.
    Bengals fall to 3-5 after 23-7 loss to Jaguars

    Bengals fall to 3-5 after 23-7 loss to Jaguars

    According to the statement by Doug Marrone, "This has been addressed internally and further details will not be made public". Ivory wouldn't find pay dirt himself, but he did more than an enough to offset the loss of Fournette for the ball game.
  • Patton Oswalt marries Meredith Salenger 4 months after engagement

    Patton Oswalt marries Meredith Salenger 4 months after engagement

    As Salenger wrote at the time of the couples' engagement back in July, "I have waited 47 years to find true love". " Alice is happy and feels loved", she continued, referencing the 8-year-old daughter he had with McNamara.

    Iran adds missile to annual anti-US pageant

    The former USA embassy in Tehran is now a cultural centre but stands as a symbol of a United States defeat for many Iranians. The diplomatic building was stormed by militant students following the 1979 revolution which toppled the US-backed Shah.
    Geoffrey Kamworor wins NY  marathon

    Geoffrey Kamworor wins NY marathon

    She had blown away the field here a year ago, winning by a margin (3 minutes 34 seconds) not seen in the women's race since 1980. In the men's race, Kenyan Geoffrey Kamworor held off countryman Wilson Kipsang to clock 2:10.53 and win by three seconds.

Star WR Evans suspended one game Star WR Evans suspended one game Lattimore turned to Winston and shoved him before Evans delivered a blow he said was "kind of malicious". "I get it. Coach Sean Payton was asked after the contest what should happen to Evans.

Broadcom offers to buy Qualcomm for $130B Broadcom offers to buy Qualcomm for $130B It was not clear who Broadcom was referring to, but Apple is Qualcomm's biggest customer. Chinese ambitions to buy U.S. chipmakers have been thwarted by United States regulators.

Kate Winslet and Allison Janney kiss on stage at Hollywood Film Awards Kate Winslet and Allison Janney kiss on stage at Hollywood Film Awards Winslet got the ball rolling when she accepted the Hollywood Actress Award for her performance in " Wonder Wheel ". This year the award show has been hosted by The Late Late show host James Corden .

Interview: Discussing Ezekiel Elliott's Latest Status With "Mighty" Interview: Discussing Ezekiel Elliott's Latest Status With That means Elliott's six-game suspension for alleged incidents of domestic violence has been put on hold again. He was never charged with a crime by the Columbus, Ohio, authorities who investigated the allegations.

Jameis Winston To Miss "A Couple Of Weeks" With Injured Shoulder Jameis Winston To Miss Winston initially sustained an AC joint sprain in his right shoulder in a 38-33 loss at the Arizona Cardinals on October 15. The Bucs also plan to activate third-string quarterback Ryan Griffin, who is on injured reserve but can return.

Screen Issues on iPhone X Confirmed By Apple Screen Issues on iPhone X Confirmed By Apple Of course, SquareTrade offers up insurance plans which are often cheaper than plans you may be able to get through your carrier. The side drop was considered the most damaging internally, while the exterior of the phone remained mostly intact.

In Tokyo, Trump issues warning to Kim In Tokyo, Trump issues warning to Kim Trump spoke to the press at dinner, explaining that he spent a lot of time talking about North Korea and trade. He urged Trump to pursue a peaceful solution by supporting those within North Korea to oppose Kim Jong Un.

Penn State, Michigan State Are On Pace For A Seven-Hour Game Penn State, Michigan State Are On Pace For A Seven-Hour Game The tie didn't last long as Penn State scored on the following possession and benefited from poor tackling by Michigan State . The rushing total moved Barkley into No. 2 all-time in Penn State history with 3,436, passing Curt Warner (3,398; 1979-82).

Trump campaign adviser Page met Russian officials in 2016 Moscow trip Trump campaign adviser Page met Russian officials in 2016 Moscow trip It is rare to see cases for perjury to Congress generally because the exchanges are often imprecise or rather fluid in nature. The person familiar with Sessions' activity during the campaign said his testimony has been truthful and consistent.

United States senator Rand Paul assaulted at home in Kentucky United States  senator Rand Paul assaulted at home in Kentucky By late Saturday, the page had been overrun by other Facebook users criticizing Boucher for his alleged assault on Paul. A spokeswoman for Paul said the senator was "blindsided" by the assault but did not provide more details.

Lebanese PM resigns suddenly, fearing for his life Lebanese PM resigns suddenly, fearing for his life The government has largely succeeded in protecting the country from the effects of the civil war in neighbouring Syria. Lebanon's Prime Minister Saad Hariri announced his suprise resignation on November 4, 2017 in a televised speech.

HTC will launch dual rear camera smartphone in 2018 HTC will launch dual rear camera smartphone in 2018 Though here, as with the U11, it can either trigger Google assistant or Alexa, rather than having to call them out by name. Edge Sense, the squeeze-to-use tech that's becoming all the rage in the smartphone world, is still an enviable feature.

Bank of England hikes rates for first time in 10 years Bank of England hikes rates for first time in 10 years Some predict rates could rise again as soon as February, but others expect there will be a pause until at least later in 2018. A reduction in interest rates makes saving less attractive and borrowing more attractive, which stimulates spending.

Bush 41 calls Trump a 'blowhard'; White House strikes back Bush 41 calls Trump a 'blowhard'; White House strikes back Ex-President George W Bush has criticised Donald Trump , saying "this guy doesn't know what it means to be President". Bush's parents were clearly disturbed by the influence of Vice President Dick Cheney and neoconservative advisers.

Kohli has faith in India's batsmen despite Rajkot reverse Kohli has faith in India's batsmen despite Rajkot reverse Munro, whose unbeaten 58-ball 109 fetched him the Man of the Match award, said the century was a reward for taking his chances. The Auckland batsman never let up, though, and powered on to his hundred as New Zealand amassed 196-2 in their 20 overs.