Technology

Senate Accuses Apple of Avoiding Taxes through Offshore Subsidiaries

Apple is one of the most popular and financially productive brands today, with worldwide revenues that skyrocket to the figure of billions, but what is actually paid in taxes to the US government isn’t quite the right amount. A Senate panel accuses Apple of avoiding taxes worth billions through offshore subsidiaries.

A Senate Permanent Subcommittee on Investigations has issued a report summary this Monday about Apple avoiding billions in US taxes via offshore heavens. The report reads that Apple has $102 billion placed in offshore accounts and is benefiting from tax rates lower than 2 percent for affiliates based in Ireland. According to the Senate report, one of Apple’s affiliates (Apple Operations International) has generated revenue of $30 billion in three years, but the company did not declare tax residence, has filed no corporate tax return nor paid income taxes.

“Apple wasn’t satisfied with shifting its profits to a low-tax offshore tax haven” said Carl Levin, Democratic Senator and chairman of the Senate Permanent Subcommittee on Investigations. “Apple sought the Holy Grail of tax avoidance. It has created offshore entities holding tens of billions of dollars while claiming to be tax resident nowhere” he added.

Apple works internationally via a number of offshore entities, out of which the Ireland-based Apple Operations International is the principal. The company has been established in 1980 but there is no evidence of the company’s physical presence or its employees. Moreover, the report found that Apple has a special deal on tax with Ireland, the company paying a tax rate that is more than 10% cheaper than the average corporate tax rate in the country.

The news about Apple avoiding US taxes through subsidiaries had politicians such as John McCain react aggressively, accusing the company of orchestrating an “egregious” and “outrageous” tax scheme. Apple “should not be shifting its profits overseas to avoid the payment of US tax, purposefully depriving the American people of revenue” McCain added.

Previous ArticleNext Article
Felicia Hawke is one of the first authors to join our team and we are very proud to have her on board.She currently covers the celebrity and beauty fields.Felicia is addicted to good looks and a great beauty advisor.Contact her at Felicia.Hawke@dailygossip.org

Leave a Reply

Your email address will not be published. Required fields are marked *