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Apple accused of tax dodging in Britain, again

Karen Haslam | Nov. 7, 2012
Apple paid just $713m (£445m) in overseas corporation tax on its foreign profits of $38.87bn (£23bn) in the past 12 months.

The New York Times quoted former executives who claimed Apple had designated overseas salespeople in high-tax countries in a manner that allowed them to sell on behalf of low-tax subsidiaries on other continents, sidestepping income taxes.

"Apple was a pioneer of an accounting technique known as the 'Double Irish With a Dutch Sandwich,' which reduces taxes by routing profits through Irish subsidiaries and the Netherlands and then to the Caribbean," claimed that report, a practice that is imitated by a number of companies, according to that report.

The practice lets Apple keep its taxes low by stashing cash offshore at subsidiaries in countries with low corporate taxes.

Back in April, Apple released a statement in response to the New York Times report claiming that is "among the top payers of US income tax" and also that it is among the top creators of American jobs.

 

 

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