Say it isn’t so.
Apple this week was found to be using a complex web of offshore entities that neither had physical offices or employees that has allowed them to pay little or no tax overseas according to Senate investigations this week.
The investigation found that between 2009 to 2012 the company shielded at least $74 BILLION in profits by setting up subsidiaries in Ireland. Although this is common in many industries, it was unprecedented in its use of multiple subsidiaries that had no physical presence at all.
It appears they had one main purpose: to take as much as Apples profits and dodge billions in U.S. tax obligations according to the Permanent Subcommittee on Investigations.
One of the subsidiaries in Ireland reported profits of $30 billion between 2009 to 2012 in which no taxes were paid at all. Another paid a tax rate of .05 in 2011 on $22 billion. That is quite the savings based on the U.S. corporate tax rate of 35 percent.
“Apple sought the Holy Grail of tax avoidance,” said Sen. Carl Levin (D-Mich.), chairman of the committee. “It has created offshore entities holding tens of billions of dollars while claiming to be tax resident nowhere.”
Tim Cook, the Apple chief executive defends the company’s record by arguing that Apple does not break any tax laws. Unfortunately they seem to have found a big, fat loophole.
Apple has always been secretive in all the operations. It is unfortunate that this technology giant is not giving back to the country that helped them grow to such a powerful and loved corporation.
What do you think?
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