The Paradise Papers reveal that Apple changed their tax avoidance strategy and how they did it.
Before May 2013 Apple avoided taxes by shifting tens of billions of dollars to their Irish subsidiaries. Nevertheless, chief executive Tim Cook declared in 2013. “We do not depend on tax gimmicks… We do not stash money on some Caribbean island.”
From 2013 and on Ireland, and other governements, attempted to close the loopholes to avoid paying taxes by multinationals. The result? Apple switched to another haven, Jersey. “An island in the English Channel that charges no tax on corporate profits for most companies. Jersey played a significant role in Apple’s new tax structure set up in late 2014. Apple now holds much of its non-U.S. earnings in a $252 billion mountain of cash offshore.”
The International Consortium of Investigative Journalists (ICIJ) have been researching leaked documents: “The secret corporate records reveal how the offshore tax game is played by Apple, Nike, Uber and other multinational corporations – and how top law firms help them exploit gaps between differing tax codes around the world.”
Read the the full article by ICIJ which shows and explains how Apple changed it’s avoidance strategy.
Read more about the Paradise Papers.