How Ireland Got Apple's $9 Billion Australian Profit

elphie007 writes "An investigation by The Australian Financial Review has discovered how from 2002 to 2013, Apple has shifted approximately $AU8.9 billion of revenue generated in Australia to Ireland, via Singapore. The article states that last year alone, Apple Australia paid only $AU88.5 million in tax, or 0.044% of estimated potential tax liabilities. What's more, the Australian Tax Office has agreed that this arrangement is acceptable under Australian law."

Re:The gain for Ireland?

[rhazz]

Ireland has corporate taxes, they are just MUCH lower than most other developed countries. So Ireland gains by taxing these corporations. It is extremely lucrative for Ireland because they get billions in tax dollars from the shell company that only has a few employees. The social cost to Ireland is nil compared to the tax revenue, but quite the opposite for Australia.

Re:Apple / Google / etc

[thaylin]

Umm, you should read the article. It does not say 30%, it says 4%. In fact the word, or number 30 is not mentioned in the article at all.

The company is not tax resident in any jurisdiction ... The average tax rate for all jurisdictions in which it operates is approximately 4 per cent.”

But

In its ASIC filings the company reported pre-tax earnings outside the US of $US4 billion in 2009 and calculated that 4 per cent tax would be $US160 million. The accounts show the actual tax paid was only $US3.65 million.

Also

They pay no US tax either because US law disregards where a company is managed and only looks at where a company is legally registered.