Apple has denied any wrongdoing after being cited in the so-called 'Paradise Papers' over the use of offshore territories to evade tax. The company was accused of reducing its tax bill by shifting some of its holdings from Ireland to Jersey in 2015.
The report released by several newspapers around the world is based on financial documents leaked mostly from Appleby, a prominent offshore law firm. The documents were obtained by Germany's Sueddeutsche Zeitung newspaper and shared with the International Consortium of Investigative Journalists.
Apple said it moved activities, including the subsidiary which holds its pile of overseas cash, to Jersey after Ireland changed its tax law. This was "specifically to ensure that tax obligations and payments to the US were not reduced. Since then Apple has paid billions of dollars in US tax on the investment income of this subsidiary. There was no tax benefit for Apple from this change and, importantly, this did not reduce Apple’s tax payments or tax liability in any country," the company said.
Apple continued to defend its tax record, claiming it is the world's biggest taxpaper and regularly pays an effective tax rate of 21 percent. “The debate over Apple’s taxes is not about how much we owe but where we owe it," the company said. Apple believes the company creates most of its wealth in the US, and hence most of its taxes should be paid there.
