The recently released Paradise Papers have revealed the offshore sites used by Apple to avoid paying billions in taxes.
BBC News reports that tech giant Apple began searching for a country to store their untaxed offshore cash in 2013. This followed a crackdown on their controversial tax practices in Ireland.
Apple then moved approximately $252 billion in cash to the #tax haven Channel Island of Jersey. Nevertheless, the company claims that this new structure has not lowered the amount of tax that they pay.
Apple still currently remains the largest taxpayer. They have paid approximately $35 billion in corporation tax over the past three years. Furthermore, the company claims that storing their funds offshore in the Channel Island of Jersey is perfectly legal. And that it “did not reduce our tax payments in any country.”
In addition, the company said that no operations had been moved from Ireland.
In 2014 Apple came under fire for their use of a tax loophole known as the “double Irish.” Through this strategy they funneled all of their sales outside America using Irish subsidiaries that were essentially stateless. This allowed them to pay very little tax on the revenues. Rather than paying the Irish corporation tax rate of 12.5 percent or the US rate of 35 percent, Apple managed to reduce their tax rate on profits outside the U.S. to less than five percent of their foreign profits.