Slashdot Mirror
Paradise Papers Leak Reveals Apple's Secret Tax Bolthole (bbc.com)
An anonymous reader quotes a report from BBC: The world's most profitable firm has a secretive new structure that would enable it to continue avoiding billions in taxes, the Paradise Papers show. They reveal how Apple sidestepped a 2013 crackdown on its controversial Irish tax practices by actively shopping around for a tax haven. It then moved the firm holding most of its untaxed offshore cash, now $252 billion, to the Channel Island of Jersey. Apple said the new structure had not lowered its taxes. It said it remained the world's largest taxpayer, paying about $35 billion in corporation tax over the past three years, that it had followed the law and its changes "did not reduce our tax payments in any country."
Leaked emails also make it clear that Apple wanted to keep the move secret. One email sent between senior partners at Appleby says: "For those of you who are not aware, Apple [officials] are extremely sensitive concerning publicity. They also expect the work that is being done for them only to be discussed amongst personnel who need to know." Apple chose Jersey, a UK Crown dependency that makes its own tax laws and which has a 0% corporate tax rate for foreign companies. Paradise Papers documents show Apple's two key Irish subsidiaries, Apple Operations International (AOI), believed to hold most of Apple's massive $252 billion overseas cash hoard, and Apple Sales International (ASI), were managed from Appleby's office in Jersey from the start of 2015 until early 2016. This would have enabled Apple to continue avoiding billions in tax around the world. The report notes that Apple paid just $1.65 billion in taxes to foreign governments, despite making $44.7 billion outside the U.S. That's a tax rate of 3.7%, which is less than a sixth of the average rate of corporation tax in the world.
Leaked emails also make it clear that Apple wanted to keep the move secret. One email sent between senior partners at Appleby says: "For those of you who are not aware, Apple [officials] are extremely sensitive concerning publicity. They also expect the work that is being done for them only to be discussed amongst personnel who need to know." Apple chose Jersey, a UK Crown dependency that makes its own tax laws and which has a 0% corporate tax rate for foreign companies. Paradise Papers documents show Apple's two key Irish subsidiaries, Apple Operations International (AOI), believed to hold most of Apple's massive $252 billion overseas cash hoard, and Apple Sales International (ASI), were managed from Appleby's office in Jersey from the start of 2015 until early 2016. This would have enabled Apple to continue avoiding billions in tax around the world. The report notes that Apple paid just $1.65 billion in taxes to foreign governments, despite making $44.7 billion outside the U.S. That's a tax rate of 3.7%, which is less than a sixth of the average rate of corporation tax in the world.
https://www.merriam-webster.co...
Table-ized A.I.
They can do this because... country laws allow it all over the world.
I can't fucking stand Apple one bit.
But I'm infinitely more annoyed that any such arrangements are legal, no matter which countries are involved in helping them do this, than anything else. That only happens because the people writing the laws are using the same tricks themselves.
If governments wrote tax-laws properly, they wouldn't be losing out on such tax, no matter what arrangement Apple tried to use.
No, it's not.
Those are big words for "lying through omission" or rather "cheating taxes".
But these activities are not illegal, just immoral - smudging the actors a little bit.
...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
Correct.
Tax avoidance is legal but immoral.
Tax evasion is both illegal and immoral.
Exploiting legal loopholes to your advantage is legal but immoral.
Breaking the law is illegal and immoral.
There are also activities that are morally right but illegal, for example feeding pigeons in Venice.
...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
If governments wrote tax-laws properly, they wouldn't be losing out on such tax, no matter what arrangement Apple tried to use.
And if pigs had wings they could fly.
Governments are run by people and concentrate power, which corrupts them.
They also operate on the "economy of negative values", which generates lots of unintended consequences as the people they're trying to loot, limit, or punish find ways to wiggle through loopholes.
Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
No, it's not.
Those are big words for "lying through omission" or rather "cheating taxes".
But these activities are not illegal, just immoral - smudging the actors a little bit.
That is what they said last time, which was since proven to be illegal....
So stop defending them. They are serial tax frauds, and I don't trust their new scheme anymore than the old one.. The one proven to be fraudulent.
Paying taxes IS moral. If some douchebag finds and exploits a loophole (like Trump, who actually had segments of the tax code created just to stop his accounting BS back in the 80's and 90's), that is taking money out of MY pocket. Wealthy assholes dodging taxes means it's left to everyone else to make up the shortfall, thus they are effectively stealing from everyone else.
Your argument reminds me of what lawful evil characters use in D&D. Laws without morality will always be exploited, and that is exactly what these rich assholes do.
~X~
The morality is in spending not inconsiderable amounts of money finding ways to subvert the clear intention of the tax law. Most people don't have that option, and those that do reduce their own tax burden at the expense of those people.
Just because it is technically legal doesn't make it morally acceptable to shirk your responsibilities while enjoying the massive benefits of being able to operate in those countries.
const int one = 65536; (Silvermoon, Texture.cs)
SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
If it were only paying a bill, you'd be correct. In practice, our complex tax system is riddled with judgement calls. There is a moral choice of whether to pay for your kid's ski lessons with child-care deductions, which is clearly not in the spirit of the deduction. It's easy to say 'well, I followed the rules' and absolve yourself of any moral responsibility, but your fellow citizens are paying (on average) ~30% income + ~8% consumption based taxes. If you're reasonably well off and still cutting every corner, you're greedy and that's a moral failing.
Millions long for immortality who do not know what to do with themselves on a rainy Sunday afternoon. -- Susan Ertz