Apple has been sending billions of dollars worth of untaxed profits from Australia to Ireland over the last decade, according to an investigation by the AFR.
At the heart of the story is Apple Sales International, an Irish company that according to the AFR, is at the centre of the tech giant’s international tax arrangements.
Here’s some shocking figures from the article:
- In 2012 an estimated $2.3 billion was diverted tax-free to Apple Sales International, and $2 billion last year
- In total, from 2002 to 2013, an estimated $8.9 billion of Australian income has been shifted to Ireland
Ten years’ worth of financial documents are cited for Apple Sales International. These reveal the mark-up the company charges for intellectual property on its products around the globe.
Basically this shows the margin Apple Sales International charges local subsidiaries, such as the ones in Australia, to resell products such as iPads and iPhones.
The parent company Apple Operations International does not pay tax in Ireland because according to local law, it’s managed and controlled in California.
But it does not pay tax, according to the report, in the United States either because despite it being managed in California, it is not registered there.
The AFR says this means none of the profits which Apple moves to Ireland from Australia and elsewhere are taxable.
Read the full story here.
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