Sunday, November 4, 2012

Shocker: Apple paid only 2% corporation tax!




According to the BBC: Apple's total profits for the year were up 24% but Apple paid less that 2% corporation tax on its profits outside the US, its filing with US regulators has shown.

Apple paid $713m (£445m) in the year to 29 September on foreign pre-tax profits of $36.8bn (£23.0bn), a rate of 1.9%.  It is the latest company to be identified as paying low rates of overseas tax, following Starbucks, Facebook and Google in recent weeks.

It has not been suggested that any of their tax avoidance schemes are illegal.

It had paid a rate of 2.5% the previous year.  Apple channels much of its business in Europe through a subsidiary in the Republic of Ireland, which has lower corporation tax than Britain.  But even Ireland charges 12.5%, compared with Britain's 24%.  Many multinational companies manage to pay substantially below the official corporation tax rates by using tax havens such as Caribbean islands…

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