Apple avoids corporate tax

Stefan Mileschin · 6th November 2012, 07:19

The BBC has outed Apple as a significant tax cheat after the company announced that it paid less than two percent corporation tax on its profits outside the US.

Apple only paid £445m in the year to 29 September on foreign pre-tax profits of $36.8bn, a rate of 1.9 percent.

The BBC points out that paying low corporation tax seems to be a game among the top US companies with Starbucks, Facebook and Google coming up with new methods of avoiding paying EU corporation taxes.

What is more alarming is that none of the their tax avoidance schemes are illegal and the companies involved still pay pots of cash to the UK taxman. Things like National Insurance and VAT, but money still ends up with the taxman.

But Apple's figures for foreign tax appear to be rather low, considering that it paid a rate of 2.5 percent the previous year.

Apple funnels most of its European business through a subsidiary in the Republic of Ireland, which has lower corporation tax than the 24 percent in Britain.

But Ireland charges 12.5 percent, so it is not clear how Apple is managing to save such a huge amount of cash.

http://news.techeye.net/hardware/app...-corporate-tax

6th November 2012, 07:19	#1
Stefan Mileschin [M] Reviewer Join Date: May 2010 Location: Romania Posts: 153,541	Apple avoids corporate tax The BBC has outed Apple as a significant tax cheat after the company announced that it paid less than two percent corporation tax on its profits outside the US. Apple only paid £445m in the year to 29 September on foreign pre-tax profits of $36.8bn, a rate of 1.9 percent. The BBC points out that paying low corporation tax seems to be a game among the top US companies with Starbucks, Facebook and Google coming up with new methods of avoiding paying EU corporation taxes. What is more alarming is that none of the their tax avoidance schemes are illegal and the companies involved still pay pots of cash to the UK taxman. Things like National Insurance and VAT, but money still ends up with the taxman. But Apple's figures for foreign tax appear to be rather low, considering that it paid a rate of 2.5 percent the previous year. Apple funnels most of its European business through a subsidiary in the Republic of Ireland, which has lower corporation tax than the 24 percent in Britain. But Ireland charges 12.5 percent, so it is not clear how Apple is managing to save such a huge amount of cash. http://news.techeye.net/hardware/app...-corporate-tax

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
AMD Recognized for Exemplary Corporate Responsibility with Listings on the Dow Jones	Stefan Mileschin	WebNews	0	23rd October 2012 08:00
Apple plans second North Carolina data center, avoids the 'Deep River Blues'	Stefan Mileschin	WebNews	0	20th July 2012 08:06
AMD Appoints Dr. Suresh Gopalakrishnan as Corporate VP and GM, Server Business	Stefan Mileschin	WebNews	0	22nd June 2012 08:30
Dell profit drops 33 percent in Q1, both home and corporate sales take a hit	Stefan Mileschin	WebNews	0	23rd May 2012 10:06
Elpida Issues Notice on Petition to Commence of Corporate Reorganization Proceedings	Stefan Mileschin	WebNews	0	28th February 2012 07:47
Nokia Belle earns corporate street-cred with Microsoft Office apps	Stefan Mileschin	WebNews	0	27th February 2012 08:23
Half Of Corporate PCs Can't Run Vista, Researcher Says	jmke	WebNews	0	11th April 2006 11:04
IBM Thinkpad T43P is a perfect corporate workhorse	Sidney	WebNews	3	29th June 2005 23:21
Swiftech Corporate News: Securities Registration Contract with Rouchon Industries Inc	jmke	WebNews	1	5th May 2005 16:03