Report: Apple offshore wealth moved to tax haven

The Associated Press

A man walks into one of Apple’s authorized premium resellers’ outlets in Singapore on Nov. 16, 2015.

AFP-Jiji SAN FRANCISCO (AFP-Jiji) — Apple shifted much of its offshore wealth from Ireland to a tax haven in the British Isles, according a review of leaked Paradise Papers documents Monday.

Apple confirmed the move in an online post, saying it served to “ensure that tax obligations and payments to the U.S. were not reduced.”

After the U.S. technology colossus stated publicly in 2013 that it was paying its proper share of taxes, it moved the bulk of its untaxed overseas cash to Jersey, a British dependency in the Channel Islands, various media organizations reported based on the once-secret cache of documents known as the Paradise Papers.

The documents shared with some media outlets by the U.S.-based International Consortium of Investigative Journalists has exposed tactics the wealthy and powerful have used to avoid taxes.

In its lengthy post, Apple said it moved profits to Jersey while making corporate changes to adapt to Irish tax laws tightening in 2015.

“Apple’s subsidiary, which holds overseas cash, became resident in the UK Crown dependency of Jersey, specifically to ensure that tax obligations and payments to the U.S. were not reduced,” Apple said.

Since then, all of Apple’s Irish operations have been conducted through Irish resident companies, paying a statutory 12.5 percent tax, according to the California-based technology titan.

“Since then, Apple has paid billions of dollars in U.S. tax on the investment income of this subsidiary,” Apple said.

“There was no tax benefit for Apple from this change and, importantly, this did not reduce Apple’s tax payments or tax liability in any country.”

Apple’s lengthy written response did not specifically address what taxes, if any, were paid on the original profits channeled to Jersey.

The world’s most valuable company noted that it has earmarked $36 billion to cover deferred U.S. taxes.

Prior to 2014, Apple had taken advantage of tax rules to route overseas revenue through Irish subsidiaries to minimize taxes.

As Apple came under pressure in the United States and Europe about what was called the “double Irish” scheme, it enlisted offshore finance law firm Appleby to find a new place to stash cash out of the reach of tax collectors, reports said.Speech

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