The opinion is widely rooted around the world that tax evasion in the USA is the most serious crime and the punishment for it is inevitable and great.
If this were true, then the directors and owners of all the major American corporations should have been sitting in prison cells for a long time. Ask why? Because they do not pay taxes. How is this possible in the most exclusive country? Easy.
May 21, 2013 09:30 Permanent Subcommittee of Investigation Room 106, US Senate Building. Senate hearing on Apple $ 40 billion evasion.
The US Senate Subcommittee examined the structure and methods used by multinational corporations to transfer profits to offshore, as well as how such activities are consistent with US tax regulations. Among the witnesses were representatives of the Treasury Department, the tax service, representatives of Apple Inc. and tax experts.
The ingenious scheme of Apple. How not to pay any taxes whatsoever without breaking the law.
Everything ingenious is simple. Apple Corporation in 1980 registered the Apple Operations International (AOI) offshore holding company in Cork, Ireland. The company has 3 people, 2 directors and an accountant. One of them is Irish, two Americans.
Apple Operations International (AOI) consolidated revenue from all of the corporation’s international operations and did not pay taxes in more than one country.
Apple explained that although the AOI was registered in Ireland since 1980, it has not declared a tax residency in Ireland or any other country and therefore has not paid any corporate income tax to any national government for the past 5 years.
You will be surprised that this can not be? Can. Apple lawyers and financiers have unearthed the difference in tax laws in the United States and Ireland. In these countries, tax residency is interpreted differently. In the US, tax residency is determined by the place of registration of the company, and in Ireland, a test is used to manage and control the company. If the company is managed from California, then it is not a resident in Ireland. At the same time, if the company is not registered in the United States, it is not a tax resident of the United States.
The second part of the scheme. This is Apple Sales International (ASI), which is the second Irish partner. This is the repository for all of Apple’s offshore intellectual property rights.
ASI buys Apple’s finished products from contract manufacturers in China – and resells them at a large margin to other Apple affiliates in Europe, the Middle East, Africa, India and the Pacific. In fact, it collects licensing fees for the use of rights to Apple products. ASI also had no employees, despite revenue of $ 38 billion over three years. ASI paid taxes, but you will be surprised how much.
In the form of such intelligent payments, only 74 billion dollars were withdrawn from the USA alone. for the period from 2009 to 2012.
From September 30, 2011 to September 29, 2012 (fiscal year in the United States – IF), Apple contributed $ 713 million of tax to the US budget from profits of $ 36.8 billion received abroad. Thus, the effective tax rate was a little over 1.9% compared to 2.5% a year earlier. For comparison: the “regular” US income tax rate is 35%.
According to Apple CEO Tim Cook, 61% of the company’s total revenue came from international operations.
The tax optimization strategy used by the company is known as the “Double Irish with a Dutch Sandwich”. This scheme allows you to withdraw profits to Ireland, the Netherlands and the Caribbean. Apple is not enough. She also actively uses domestic tax offshores in the United States: her headquarters are located in California, but Apple pays most of the taxes in neighboring Nevada, where the tax rate for a number of transactions is zero.
As they say arrogance is the second happiness. The impudence of the leadership of Apple was fascinated by all participants in the hearings.
Apple currently holds about 252 billion dollars in profits offshore, where it can avoid paying US taxes. This is more than 90% of the total cash of the company.
Why is Tim Cook still not in prison?
Everything is very simple. There is no corruption in the USA. In the US, it was called lobbying and turned corny into a business. 78 congressmen in their family have legal lobbyists.
What the giants of Silicon Valley do. Everyone knows that after joining the White House, President Trump passed through Congress a law to reduce corporate tax from 35% to 21%. But the devil is always in the details