Apple moves global cash to Jersey for tax reasons

Apple moves global cash to Jersey for tax reasons

The record-breaking case surrounding Apple has placed a major spotlight on Ireland's tax regime and led to criticism from the likes of US President Donald Trump.

"We strongly support efforts from the global community toward comprehensive worldwide tax reform and a far simpler system".

Apple shifted much of its offshore wealth in the face of a tax crackdown on a haven it had in Ireland, according to reporting Monday on the Paradise Papers on the iPhone maker's tax strategy. The company and Ireland deny the charges and have appealed against the decision.

Apple boss Tim Cook stressed at the time that the company paid the tax it owed.

Apple decided that its new offshore tax structure should use Appleby's office in Jersey, the largest of the Channel Islands with a population of 100,000.

The documents shared with some media outlets by the US-based International Consortium of Investigative Journalists has exposed tactics the wealthy and powerful have used to avoid taxes.

CNET is unable to verify whether the documents are real or have been altered.

Apple on Monday responded to the claims, suggesting that the move was part of its corporate restructuring to comply with Ireland's rules and to ensure that "tax obligations and payments to the USA were not reduced".

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Apple is one of many United States technology companies that have benefited from stashing cash overseas.

That US probe subsequently contributed to the Government deciding to tighten rules on so-called stateless companies to ensure that Irish companies had to be resident somewhere.

Apple said that after its reorganisation it is paying more Irish tax than before.

But Apple has come under fire both in the United States and the European Union for its tax practices.

It is claimed that the companies were set up in Jersey after Apple "shopped around" for a new jurisdiction following the closure of a tax loophole in Ireland which the firm exploited until 2013. The selective treatment allowed Apple to pay an effective corporate tax rate of 1 percent on European profits in 2003, according to the commission past year. The taxes it pays to countries around the world are based on that principle. As a result, the European Union slapped Apple with a $14.5 billion tax bill in mid-2016.

Apple moved the tax home of two Irish subsidiaries to Jersey, a self-governing island in the English Channel between Britain and France, and also made Ireland the tax home of a different European subsidiary.

"The company appeared to be on the lookout for a country in which nothing at all would get in the way of business", said Süddeutsche Zeitung.

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.

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