EU's Vestager seeking details on Apple's recent tax set-up

09 November, 2017, 01:43 | Author: Salvatore Jensen
  • Paradise Papers India ranks 19 out of the 180 countries represented in the data in terms of the number of names

Apple moved two of its subsidiaries from Ireland to Jersey in order to minimise its tax liabilities following the EU-led crackdown on low-tax Ireland, according to the latest releases from the so-called "Paradise Papers".

German newspaper Süddeutsche Zeitung received the documents and shared them with ICIJ and its media partners, including The New York Times, Australia's ABC, the BBC in the United Kingdom, Le Monde in France and CBC in Canada.

The cache of 13 million secret documents came from Appleby, a Bermuda-based law firm that helps businesses and wealthy individuals find tax shelters.

At a 2013 congressional hearing, Apple chief Tim Cook denied the use of "gimmicks" to avoid taxes.

It has been discovered that Apple made changes to where their operations were run from and have now chosen Jersey.

The BBC and the Guardian say Apple sent the Jersey company a questionnaire concerning matters including the public visibility of its records, the possibility of special arrangements with the government and how stable such deals would likely be for each potential location. For instance, the company said its 2015 corporate reorganization was "specially created to preserve its tax payments to the United States, not to reduce its taxes anywhere else".

The European Union instructed Apple previous year to pay upto $14.5 billion as sanction of illegal taxes benefits in the Ireland. "In fact, our payments to Ireland increased significantly and over the past three years we've paid $1.5bn in tax there - 7% of all corporate income taxes paid in that country", said an Apple statement. That allowed the Isle of Jersey to cut its corporate tax rate to zero percent a decade ago.




It said: "A coordinated legislative effort internationally will remove the current tug of war between countries over tax payments and ensure certainty of law for taxpayers". "At Apple we follow the laws, and if the system changes we will comply".

According to the August 2016 decision issued by the EU, Apple met with the European Commission in 2015 to explain its new corporate structure as well as submitting a summary with the key elements as a follow-up. "We're proud of the economic contributions we make to the countries and communities where we do business", it said in a lengthy statement.

Apple's actions were not illegal and the companies have since moved out of Jersey.

After the European Union announced in 2013 that it was investigating Apple's Irish arrangement, the Irish government decided that firms incorporated there could no longer be stateless for tax purposes.

It was May 2013, and Apple CEO Cook appeared before a Senate investigative subcommittee.

The majority of the leaked Paradise Papers come from Appleby, which specialises in offshore accounts.

The company said it "pays every dollar it owes in every country around the world", including tax in the U.S.at the standard rate of 35% and an effective rate of 21% on foreign earnings.

Recommended:

  • Nicaraguan Immigrants To Lose Temporary Protected Status In The US

    Nicaraguan Immigrants To Lose Temporary Protected Status In The US

    Haitians and Salvadorans are also waiting to hear what the United States is going to do with their TPS designation. Elaine Duke said the country's TPS designation would therefore have to be terminated.

    RBA bets safe, leaves rates on hold

    While inflation has lifted a little over recent months, Dr Lowe said this was due to two areas - tobacco and electricity. The bank had reduced the rate by 25-basis points each in August and May a year ago .
    Italian legend Andrea Pirlo officially announces retirement from football

    Italian legend Andrea Pirlo officially announces retirement from football

    In an global career spanning over 13 years, Pirlo went on to play 116 matches for Italy and scored 13 goals. Legendary Italian football player, Andrea Pirlo has finally called time on his illustrious career.
  • United Kingdom  minister apologizes for unauthorized meetings with Israeli officials

    United Kingdom minister apologizes for unauthorized meetings with Israeli officials

    On Tuesday No.10 confirmed Patel had suggested the United Kingdom send aid money to the Israeli army in the Golan Heights.
    Delhi air quality reaches alarming levels, primary schools shut

    Delhi air quality reaches alarming levels, primary schools shut

    Sisodia said the Government had also advised citizens not to burn dry leaves, crop residue, wood, coal etc. Kejriwal added, "All of us together have to find a soln to this".
    Koenigsegg beats Bugatti's speed record

    Koenigsegg beats Bugatti's speed record

    The Chiron is claimed to have a top speed limited to 261mph, but Bugatti has hinted at a potential for 310mph. You can watch both high-speed runs in the video above, which was posted on YouTube by Julian Thomas .
  • Sheep can recognize people's faces from photographs

    Sheep can recognize people's faces from photographs

    Sheep are social animals and can recognise other sheep as well as familiar humans . When the handler's face was shown, sheep picked it seven out of 10 times.
    Welcome to a world with 280-character tweets

    Welcome to a world with 280-character tweets

    However, Twitter users - or, at least, a lot of them - did not sound off with the same level of enthusiasm when the news broke. Twitter recently announced a test project allowing tweets to be expanded to 280 characters - double the existing limit.
    Boris Johnson to call Iranian minister over Nazanin Zaghari-Ratcliffe comments

    Boris Johnson to call Iranian minister over Nazanin Zaghari-Ratcliffe comments

    Nazanin Zaghari-Ratcliffe was jailed for five years after travelling to the country, amid allegations she was part of a coup plot. A petition has now been launched on online petition site Change.org demanding Mr Johnson step down as foreign secretary.
  • SCARNG Prepares for Flu Season

    Second, because flu viruses are constantly changing, vaccines are updated annually to keep up with the changing viruses. However, as the study was done on mice, more research needs to be conducted to determine if the vaccine works in human.
    Debutant Mohammed Siraj in tears during National Anthem ceremony in 2nd T20I

    Debutant Mohammed Siraj in tears during National Anthem ceremony in 2nd T20I

    Bhuvneshwar Kumar and Jasprit Bumrah have fast cemented their place in the Indian limited overs setup as the first choice seamers. When asked about the team missing the training and net session on Friday, Bumrah was quite candid.
    Waymo's fully self-driving cars are here

    Waymo's fully self-driving cars are here

    That's certainly going to be an unnerving experience for someone who has never been in a self-driving auto before. During this next phase, Waymo will slowly expand the area it operates in to cover 600 square miles.


Popular

Corbyn: Queen should apologise for investing in BrightHouse
From at least 2004 to 2010, the duchy also invested in the Bermuda-based Jubilee Absolute Return Fund. Elsewhere, the Duchy has investments in a number of overseas funds, including one in Ireland.

Ranveer Singh Cuts His Hair For his Upcoming Film 'Gully Boy'
The actor is supposedly not going to be promoting Padmavati pre-release but will be seen promoting it with Aditi Rao Hydari soon. The BJP MLA also said, "If anyone burns down the theatre which shows Padmavatiji (the fictional queen) in poor light".

Schiff: 'Our democracy is under threat' from Trump, Russia
Page said he did not recall the email until a reporter from The Washington Post told him about it in August of this year. Jeff Sessions about a trip he made to Russian Federation during the 2016 presidential election.

The Last (and Only) Time Brian Michael Bendis Wrote for DC Comics
That makes this move all the more intriguing, because it's hard to predict what he'll do in the DC sandbox. "Change is healthy. Will Marvel take this opportunity to refresh its pool of talent, or will we just see a reshuffle of established writers?

To the brain, sleep deprivation is 'like drinking too much'
Not only does it affect your ability to drive, sleep deprivation has also been linked to diabetes, obesity and depression. He believes that there should be legal and medical standards in place to identify worn out drivers on the road.

Cody Garbrandt Still Believes "I'm The Better" Fighter
He's a helluva fighter. "You can't be in a position where you're like, 'I want $2 million, f**k you, I don't care what you make". When it comes to a potential rematch between the two, the current champion is saying the former champion isn't getting one.

Latest