![]() ![]() And Appleby’s internal documents were leaked to the German newspaper Süddeutsche Zeitung and the ICIJ.īoth Apple Sales International and Apple Operations International declared tax residency in Jersey back in 2014. Offshore law firm Appleby helped Apple set up its tax home in Jersey. The European Union investigation combined with the ending of the Double Irish led Apple to Jersey. Other European governments lobbied to put an end to the Double Irish back in 2014. Apple has continuously maintained that it complied with tax laws in Europe and the U.S., though it certainly took advantage of favorable tax laws in Ireland. This tax avoidance structure was so popular among tech companies like Google and Facebook that it had a cute nickname - the Double Irish. French finance minister Bruno Le Maire thinks tech companies should be taxed based on actual revenue in European countries instead of profit, as tech companies will always find a way to hide their profits. It’s unclear if Apple is going to pay this fine as European governments are currently discussing a tax reform. In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1 per cent on its European profits in 2003 down to 0.005 per cent in 2014,” Vestager wrote at the time. “The Commission’s investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years. The European Union started an investigation in June 2014, leading to the huge $14.5 billion fine. And, you guessed it, those two subsidiaries then attributed the vast majority of their profit to a “head office.” This head office wasn’t based in any country on earth. According to the ICIJ, it has reported more than $120 billion in revenue between 20.Ī second subsidiary called Apple Operations International then received most of those $120 billion in dividends. The first Irish subsidiary called Apple Sales International was receiving most of Apple’s international profits. Like many multinational companies, Apple incorporated multiple companies in Ireland. More importantly, Jersey doesn’t usually tax companies.įor years, the company benefited from tax benefits in Ireland which were later ruled illegal by the EU Competition commission - a ruling Apple and Ireland are still fighting. Jersey is located near the coast of Normandy. Apple relocated its cash stockpile to the tiny island of Jersey after the beginning of the investigation back in 2014. ![]() The company expected some bad news when Commissioner Margrethe Vestager started the investigation in 2014, as the International Consortium of Investigative Journalists revealed in the Paradise Papers. Last year, the European Union ordered Apple to pay up to $14.5 billion for illegal tax benefits in Ireland. ![]()
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