Paradise Papers: Apple moved offshore tax haven to Jersey after Ireland crackdown

08 November, 2017, 09:32 | Author: Barbara Daniel
  • Mont Orgueil Castle on Jersey the British tax haven

This week there have been reports over Apple tax affairs and also a number of company's after lots of documents were leaked in the Paradise Papers.

It is the latest revelation from the vast set of papers throwing light on the offshore activities of certain companies and individuals. There is no suggestion that those involved acted illegally.

The tiny island of Jersey in the English Channel has reportedly become a tax haven for companies like Apple.

Collectively, the leaked documents paint a picture of a company looking for a jurisdiction where it would pay low or non-existent taxes, and could operate with discretion in a stable political environment unlikely to change suddenly.

Apple's hunt for a tax haven is a familiar tale, said Reuven Avi-Yonah, director of the global tax program at the University of Michigan Law School, who also reviewed the Appleby documents.

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

"We believe every company has a responsibility to pay the taxes they owe and we're proud of the economic contributions we make to the countries and communities where we do business". "We don't depend on tax gimmicks", he went on. "We do not stash money on some Caribbean island".

Apple didn't immediately respond to CNET's request for comment but told ICIJ and the other investigative media outlets that "the changes we made did not reduce our tax payments in any country".

In Apple's case, it held its cash in Ireland to pay a much smaller tax rate than the 35 percent level in the US.

In a statement, Apple said that it paid "every dollar it owes in every country around the world" and said changes to its corporate structure in 2015 were to preserve tax payments in the U.S. rather than lower them elsewhere.

In Budget 2014, following months when the Government here faced repeated attacks over a low corporation tax rate and its popularity with global brands such as Apple, Facebook and Google, the Government moved to rebuild its reputation overseas.

Although it was aimed at Double Irish structures, the potential rule change would ban all Irish companies from claiming tax residency in a tax haven.

Then-finance minister Michael Noonan said the reform was necessary because the tax loophole had "caused Ireland great reputational damage" and "the solution was in our hands". In fact, our payments to Ireland increased significantly and over the last three years we've paid $1.5 billion in tax there - 7% of all corporate income taxes paid in that country.

MORE: Paradise Papers: how do offshore tax avoidance schemes work?

The BBC report cites evidence uncovered in the Panama Papers suggesting Apple actively sought out an alternative arrangement from 2014 onwards.

A law professor who reviewed the documents told the newspaper that there was a "strong possibility" that Apple moved intellectual property to Ireland in a transfer worth almost $200 billion.

Recommended:



Popular

Giants reinstate Janoris Jenkins, re-sign Deontae Skinner
Jenkins didn't report to the team's practice October 30 and was suspended indefinitely the next day. Jenkins failed to notify the Giants of his whereabouts and thus was suspended by Ben McAdoo .

Chris Jericho vs. Kenny Omega Is Official For NJPW's Wrestle Kingdom 12
His Thoughts on WWE Talent: " WWE , in general - you can quote me on this I don't care - everyone there is so below me". Chris Jericho has arguably had the best aggregate body of work of any pro wrestler in the last 20 years.

Congress angry because I am fighting corruption: PM Modi in Himachal
Voting in 68 Assembly constituencies in the state is due on November 9 and the results will be out on December 18. The Congress can not scare me by burning my effigies.

"SHOULD GET DEATH PENALTY!" Says Trump About NYC Attack Suspect
The criminal complaint said he chose to use a rented truck as a weapon "to inflict maximum damage against civilians". Trump also has called for eliminating the 1990s visa lottery program that Saipov used to come to the U.S.in 2010.

Captain Kohli turns 29, celebrates birthday with teammates
MS Dhoni and Virat Kohli formed a steady partnership but the boundaries dried up. "The ball got scuffed up", he added. Before that New Zealand had beaten India in five successive T20s. "But we were left with a very hard task", he said.

NFL Week 9: Keys for Giants vs. Rams
The Giants managed a fourth-quarter touchdown on a 10-yard pass from Manning to tight end Evan Engram to make it 48-17. They then got a blocked punt from Cory Littleton and took a 41-10 lead on Goff's four-yard touchdown pass to Woods.

Gunman wounds several during Sunday church service in Texas
The Bureau of Alcohol, Tobacco and Firearms said agents from its San Antonio office were responding to the shooting. There is a large police presence at the church in Sutherland Springs, which 48 kilometres southeast of San Antonio.

NFL Owners Asked For Records Involving Colin Kaepernick
Kaepernick said he was looking for an opportunity to play and wanted to be judged as a football player. Kaepernick has struggled to find a job in the NFL following his protests during the National Anthem.

Beyoncé joins cast of new Lion King film as voice of Nala
Walt Disney Studios took to Twitter on Wednesday to announce the lineup for its highly anticipated 2019 reboot of The Lion King . With no human characters in the film, it isn't yet clear how, if it all, Disney will create a "live-action" update.

LeBron in rare 'Air' as James joins Jordan in scoring milestone
He took to social media for what he called one of those "what's on your mind videos" to talk about the start. The two have reunited in Cleveland this year hoping to rekindle that spark that led to two titles in Miami.