| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Irish Economy Last Updated: Mar 8, 2014 - 9:52 AM

Corporate Tax 2014: Apple's massive tax avoidance revealed in Ireland and Australia
By Michael Hennigan, Finfacts founder and editor
Mar 7, 2014 - 7:04 AM

Email this article
 Printer friendly page

Corporate Tax 2014: Apple's tax avoidance is revealed in reports in Ireland and Australia that focus attention again on Ireland's role in saving the electronics giant billions in taxes.

Apple shifted an estimated A$8.9bn (€5.84bn) in untaxed profits from its Australian operations "to a tax haven structure in Ireland in the last decade," an investigation by The Australian Financial Review has found.

The AFR said that last year Apple reported pretax earnings in Australia of only $88.5m after it sent an estimated A$2bn of income from its Australian sales to Ireland via Singapore, where Apple negotiated a secret tax deal in 2009.

In Ireland, according to accounts obtained by The Irish Times (it doesn't publish them), for one of Apple's unlimited companies, which does not have to file financial accounts at the Irish Companies Office, Apple Sales International (ASI), the consumer electronics giant cut its Irish tax bill by more than €850m between 2004 and 2008, using an unexplained “lower rate”.

The newspaper says ASI provides “sales and marketing services” to Apple subsidiaries around the world that sell iPods and iPads. Between 2004 and 2008, it reported profits before tax totalling A$7.11bn on sales of more than A$29bn.

The accounts for those years state the corporation tax that would be due using Ireland’s 12.5 per cent rate - -  €890m over the five years. But they also show how much corporation tax ASI actually paid to Irish authorities – just €36m.

The Australian Financial Review says that Apple Sales International has reported more than $US100bn (A$112bn) of profits in the last five years. Its accounts show it has paid less than 50¢ in tax on every $1000 of income.

Last May the US Senate’s Permanent Subcommittee on Investigations revealed how Apple was using Irish offshore companies that it considered as 'stateless' -- not obliged to report to any tax authority in the world -- to route much of its overseas income through tax-free.

Ireland closed the 'stateless' loophole but it didn't impact the Irish companies in West Atlantic tax havens that are part of the 'Double Irish Dutch Sandwich' tax-dodging scheme. 

The AFR says that in the four years from 2010 to 2013 Apple’s Australian arm, Apple Pty Ltd, reported to ASIC total sales of $20bn and pre-tax profits of $387m. The Financial Review analysis shows that Apple’s Australian arm paid an estimated A$7.2bn in profits to Apple Sales International in Ireland for “intangibles” over the same time frame. (Apple Sales International reports marketing, research and other expenses in Ireland.)

In total, from 2002 to 2013, an estimated A$8.9bn of Australian income has been shifted to Ireland.

The AFR said Noel White, Ireland’s ambassador to Australia, said Ireland was unapologetic about its low rates - - what about no rates?

Selection of Finfacts tax reports 2013/14:

US company profits per Irish employee at $970,000; Tax paid in Ireland at $25,000

Corporate Tax 2014: White House and Congress to publish US reform proposals

Corporate Tax 2014: US proposal of 17% rate for foreign profits

Irish Corporate Tax 2014: How official spin and distortion works - in short-term

Irish Corporate Tax 2014: Noonan signalls publicity offensive on effective rate

Corporate Tax 2014: Obama running with the hare and hunting with the hounds

Corporate Tax 2014: Yahoo! joins “Double Irish Dutch Sandwich” club; IDA Ireland wants more members 

Corporate Tax: Kenny reassures Facebook but Ireland's rate is too high

Foreign government requests Bermuda to investigate Microsoft's Irish-linked subsidiaries

G-20 Australian presidency focuses on tax "leaking bucket"; Ireland still in denial?

Corporate tax reform and the biggest tech tax havens

Ireland's new International Tax Charter: More political kabuki

Ireland's tax man for Silicon Valley

Corporate Tax 2014: UK's revenues plunge; France considers reform

Check out our subscription service, Finfacts Premium , at a low annual charge of €25

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March