Apple Has Been Avoiding Taxation


The chief executive officer of Apple appeared before the United States Senate investigative subcommittee in May 2013 and vehemently distanced his company with any form of tax evasion. He said that his company was dedicated to paying taxes to every dollar and did not send any money to a Caribbean island. An investigation that was lengthy revealed that the giant tech company had avoided taxes that amounted to tens of billion dollars. Barely five months after Mr. Cook gave his testimony, the company’s tax structure was subjected to scrutiny by the Irish officials. According to some leaked records, Apple began looking for a place where they can put their profits. Some law firms whose specialty is offshore tax shelters were of help to the tech giant as they helped it pass through many countries before landing in a Jersey island where corporate income is not taxed.

$128 billion is the amount of profit that the iPhone maker has kept on the island. It should be noted that America does not tax this amount of money and neither can it be touched by any other country. The story of how Apple was looking for a tax haven and how it used Jersey was disclosed in a finding from secret company records of Appleby law firm which is known to cater for business and wealthy elites. The document revealed how some law firms help their clients avoid taxes using the tax laws of different countries. The clients of Appleby have for instance transferred their patent rights and some assets to offshore companies, and hence avoiding taxation that could amount to billions of dollars.

According to Edward D. Kleinbard, a law professor at the University of Southern California, most of the multinational companies are experts in tax evasions. He went on to say that the scheme of avoiding taxes does not only affect the tax collection in the United States but that of every large economy. The strategies used by companies such as Amazon, Apple, Google, Starbucks among other companies are said to cost governments about $240 every year in revenue. The revelation comes days after the Republican legislatures came up with some tax proposal that will benefit the multinational companies. Part of the project is cutting tax rates from 35 percent to 20 percent. When asked about the company’s tax strategies, Apple’s spokesperson did not answer. He said the company follows the laws.


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