Open

Coming up

Don't miss

Replay


LATEST SHOWS

DEBATE

Homegrown Jihadists: France Sets Out Plan to Monitor Web and Support Families

Read more

WEB NEWS

Ukrainians turn Russian 'evidence' into meme

Read more

FOCUS

Copenhagen seeks to decriminalise use of cannabis

Read more

FACE-OFF

French president's advisor resigns: A new blow for François Hollande

Read more

ENCORE!

Films as plays, plays as films and TV at the cinema

Read more

MIDDLE EAST MATTERS

Syria: Former hostages recount 10-month ordeal

Read more

TALKING EUROPE

José Bové, Candidate for the EU Commission presidency, Group of the Greens

Read more

TALKING EUROPE

Alexis Tsipras, Candidate for the EU Commission presidency, European Left Party

Read more

FOCUS

'Pope-mania' hits John Paul II's Polish hometown

Read more

  • Fatah, Hamas agree to form Palestinian unity government

    Read more

  • New far-right mayor moves to quash Paris region mosque

    Read more

  • Gay marriage, one year on: ‘French civilisation did not crumble’

    Read more

  • Turkish PM offers condolences to descendants of Armenians killed in 1915

    Read more

  • NYPD public relations campaign on Twitter goes awry

    Read more

  • Russia vows to respond if 'attacked' in Ukraine

    Read more

  • In pictures: Violent protests erupt in Rio

    Read more

  • French hostage Gilberto Rodrigues Leal has died, Islamists say

    Read more

  • 'Pope-mania' hits John Paul II's Polish hometown

    Read more

  • French actress Catherine Deneuve to sell €4 million château

    Read more

  • Chelsea, Atletico draw 0-0 in first leg of Champions League semis

    Read more

  • Ukraine to relaunch offensive in the east after politican 'tortured'

    Read more

  • Echoes of 2pac and Biggie? French rap feud turns violent

    Read more

  • New French film tackles grisly anti-Semitic murder

    Read more

  • Photos link ‘little green men’ in Ukraine to Russian troops

    Read more

  • New anti-radicalisation plans aimed at fighting jihadism

    Read more

  • David Moyes sacked by Man United after just 10 months

    Read more

Business

Apple using global offices to skirt billions in US taxes

©

Text by News Wires

Latest update : 2012-04-30

A report published by the New York Times on Saturday says that media giant Apple has avoided paying billions of dollars in US taxes by setting up small offices around the world to collect and invest the company's profits.

AP - A published report says Apple Inc. uses subsidiaries in Ireland, the Netherlands and other low-tax nations as part of a strategy that enables the technology giant to cut its global tax bill by billions of dollars every year.

The New York Times on Sunday outlined legal methods used by Cupertino, California-based Apple to avoid paying billions of dollars in federal and state taxes.

One approach highlighted in the report: Even though the company is based in California, Apple has set up a small office in Reno, Nevada, to collect and invest its profits. The corporate tax rate in Nevada is zero. In California, it’s 8.84 percent.

While many major corporations try to reduce their tax bills, technology companies like Apple, Google Inc., Microsoft Corp. and others have more options to do so.

That’s because some of their revenue comes from digital products or royalties on patents, which makes it easier for them to move profits to tax-friendly states or countries, the Times said.

In contrast, it’s tougher to shift the collection of profits from the sale of a physical product – like groceries or a car – to a tax-friendly haven.

The 71 technology companies in the S&P 500, including Apple, Google, Yahoo Inc. and Dell Inc., reported paying global cash taxes over the past two years at a rate that’s, on average, one-third less than other S&P 500 companies, the Times said.

Apple has legally allocated about 70 percent of its profits overseas, where tax rates are often much lower than in the U.S., according to company filings.

The Times cites a study by former Treasury Department economist Martin A. Sullivan that estimates Apple’s federal tax bill would have been $2.4 billion higher last year without such tactics.

The newspaper says Apple paid $3.3 billion in cash taxes globally on $34.2 billion in profits last year. That’s a tax rate of 9.8 percent.

In a statement, Apple told the Times that it has complied with all laws and accounting rules, and says that its U.S. operations generated nearly $5 billion in federal and state income taxes in the first half of fiscal 2012.

Wall Street analysts predict Apple could earn up to $46.9 billion in its current fiscal year, according to FactSet.

Date created : 2012-04-30

  • USA

    US sues Apple, publishers over e-book price fixing scheme

    Read more

  • CHINA

    Apple to improve work conditions in Chinese factories after report

    Read more

  • TECHNOLOGY

    Apple refunds Australian iPad consumers

    Read more

Comments

COMMENT(S)