Friday, November 17, 2017

Meet the small island where Apple has a seat (but only to evade taxes)

Apple, like all technological giants, does tax engineering to bypass high tax burdens elsewhere.

"In a place in La Mancha ..." starts 'El Quijote' by Cervantes, a mythical beginning of universal literature that Apple has adapted to the way in which they pay their income: "In a place of the English Channel ... " Specifically on an island between France and the United States, that is where Tim Cook began to shape the history of tax engineering of the company he leads.

Because the island of Jersey, according to an investigation of the German newspaper 'Süddeutsche Zeitung' published by 'The New York Times', has been one of the tax offices of the subsidiaries of the Cupertino companies that have helped limit the money they pay in taxes.

With just one hundred thousand inhabitants and dependent on the United Kingdom only on a representative level, this territory actually functions as an autonomous country with its own legal and financial systems, as well as its courts.

This autonomy has allowed two Apple affiliates, according to journalists from the International Consortium of Investigative Journalists, to choose Jersey as their tax location. Originally they were in Ireland, but as the European Union has been behind the ear for a few years they decided to pack their bags out to sea.

Through a statement the company has stated that no operation or investment "moved from Ireland" and that the company was restructured to comply with the new Irish tax laws of 2015. However, the investigation argues that the company did seek a tailored suit in the form of fiscal home with the legislative change.

Two years before, in 2013, Tim Cook had declared in the US Senate that they did not depend on "tributary tricks" and that they did not keep the money in "Caribbean islands". If we look at what was collected by the New York newspaper, yes, although the location of the island varies.

The newspaper argues that the giant has accumulated more than 128,000 million dollars over the last decade outside the United States, a country that has not taxed those profits and, they add, "it is unlikely that another could have done it".

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