Technology giant Apple has been accused by a US Senate committee of tax evasion for allegedly exploiting the differences between American and Irish tax laws.
According to the Senate Permanent Subcommittee on Investigations, Apple has not acted illegally but by using an unusual tax structure has managed to keep billions of dollars of profits tax-free in Irish subsidiaries. The report comes a day before Apple’s CEO is due to testify before Congress on the matter.
The main subsidiary, which includes Apple’s retail stores throughout Europe, has not paid any tax in the last five years. The Senate report shows that the Cork-based subsidiary received $29.9 billion in dividends from 2009-2012, which equates to 30 percent of Apple’s total worldwide net profits.
Apple has denied the claims saying it does not use “tax gimmicks“ and indicated it paid nearly $6 billion in taxes to the US Treasury in 2012.
But committee member John McCain told reporters: “Apple claims to be the largest US corporate taxpayer, but by sheer size and scale, it is also among America’s largest tax avoiders.”
The Senate group is examining the methods used by large corporations to move profits offshore. Many large firms avoid repatriating their foreign earnings to escape the top 35% tax rate.
Ireland has said it is not to blame for Apple’s low global tax payments. Deputy Prime Minister Eamon Gilmore told Irish station RTE, “They are not issues that arise from the Irish taxation system…They are issues that arise from the taxation systems in other jurisdictions”.
- 1EgyptAir crash: airline says Flight MS804 wreckage found
- 2Venezuela economy fractured with shortages of essentials across the country
- 3The nuclear waste site at the heart of Canada’s wildfires
- 4Crimean Tatars look for Eurovision boost on day of national tragedy
- 5Kazakh police break up anti-government protests
Latest world news
Eurozone ministers agree “breakthrough” deal with Greece
Kurdish-led militias launch offensive against ISIL-held Raqqa
Paris attacks: victims families seek answers
UN chief Ban voices his disappointment as first World Humanitarian Summit closes
Monsanto rejects Bayer multi-billion dollar bid
Wires > News
- 05:50 CET Mexico and EU to start talks on updating trade deal in June
- 05:04 CET Childhood goes up in smoke for Indonesian tobacco farm workers
- 02:59 CET Japan PM Abe to meet with Obama, Cameron ahead of G7 summit
- 02:51 CET After benefits of cheap oil, India counts cost of reduced Gulf…
- 00:50 CET Pakistan can’t confirm Taliban leader is dead, criticises …
- 23:17 CET Daughter of detained Hong Kong bookseller appeals for U.S. help
- 23:01 CET Brazil’s Temer seeks constitutional change to curb public spending
- 22:19 CET Egyptian appeals court cancels five-year jail terms for 47 over…