Apple moves global cash to Jersey for tax reasons

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Now, new published reports show just how some of these global corporations tapped elite tax specialists to devise clever strategies, including island havens and secretive shell companies, to avoid paying billions of dollars into government coffers. One particular focus in recent years was how Apple had booked its massive earnings, much of it intellectual property generated in the USA, to offshore tax shelters in Ireland. That's why Apple's worldwide subsidiaries now route profits through Jersey to avoid paying taxes.

The news outlet and the nonprofit investigative organization cited confidential records that were obtained by the German newspaper Suddeutsche Zeitung ("ZOOT-doi-cheh DZEYE-tung") and shared.

Apple spokesman Josh Rosenstock told The TImes that the company notified the US, Ireland and the European Union about the reorganization of its Irish subsidiaries and claims, "The changes we made did not reduce our tax payments in any country".

A trove of documents known as the "Paradise Papers" names the Mercedes driver and several wealthy peers, including Bono, Apple, Nike and even the Queen of England, as those who avoid taxes through a series of secret offshore deals.

Paradise papers come after 1.5 years of Panama leak and hold information of 13.4 million documents in 1.4 terabytes (TB) of data from a firm Appleby. Playing the Irish and American tax laws against each other, Apple effectively declared tax residency nowhere in the world. Far from being "untouched by the United States", Apple pays billions of dollars in taxes to the USA at the statutory 35 percent rate on investment income from its overseas cash. The plane was imported from Switzerland and, after a two-hour stop over in the small island in the Irish Sea, was able to fly anywhere in the EU.

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It hasn't been clear until now how much interest Apple would have to pay on the outstanding taxes.

The document files contain details of the tax affairs of some of the richest people and corporations around the world, quotes Hindustan Times.

In an email exchange, Apple's lawyers asked Appleby to confirm that a possible move to one of six offshore tax havens, including the island of Jersey in the English Channel, would allow an Irish subsidiary to "conduct management activities.without being subject to taxation in these jurisdictions".

Another major USA company, Nike Inc., was also named in the leaked documents, which showed that authorities in the Netherlands had effectively given the sports gear maker the green light for a 10-year tax-avoidance arrangement that would allow the company to shift billions of dollars in profits from Europe to the tax haven of Bermuda, according to the ICIJ. Instead, it created a third company based in Ireland and moved its intellectual properties to the company to benefit from a new IP-related tax deduction worth more than $13 billion in tax each year for 15 years. A year earlier, a bipartisan US Senate committee had pilloried the company for seeking "the holy grail of tax avoidance". In response to the Paradise Papers story, Apple told the Times that "we follow the laws, and if the system changes we will comply". Appleby listed two Apple subsidiaries as based in Jersey, starting in 2015. The Los Angeles Times is not a media partner.



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