Tax related to Apple, Ireland Refutes

Irish Deputy Prime Minister Eamon Gilmore denied the United States Senate that Apple managed to evade billions of dollars because of the tax concessions in the country's tax system.

Senate Sub-Committee on Investigations said in a report on Monday (05.20.13) says that between 2009-2012 Apple evade taxes 44 billion dollars that should have been paid to the United States. Apple rejected the allegations of the Senate. Apple CEO, Tim Cook, on Tuesday (05.21.13) scheduled to attend the Sub-Commission of Inquiry led by Senator Carl Levin and Senator John McCain.

In a statement to Television Ireland (RTE) on Tuesday, Gilmore said the country's corporate tax system is transparent, clear and applicable to all companies. Gilmore also citing valuation Organization for Economic Cooperation and Development (OECD) that the country's tax rules are very strict.

"The issue (deviation taxes) it is not because Irish tax system," said Gilmore. He added that this problem arose because of a legal loophole in other countries.

Gilmore, who doubles as foreign minister, speaking in Brussels ahead of a meeting of EU foreign ministers. He said Ireland supports international efforts to tighten international tax rules.

Apple is a multinational company which has recently become the spotlight in the United States and Britain because of the way they deal with corporate taxes by setting up subsidiaries in various countries. The Senate had already summoned the leaders Microsoft and Hewlett Packard.

Meanwhile, the British parliament accused Google, Starbucks and Amazon did taxation practices unethical. Chairman of the British Parliamentary Committee for Public Accountability, Margaret Hodge, Thursday (16/05/2013) and then accused Google of doing evil, devious and unethical in tax matters.

Low taxes

Senate Sub-Committee's report says that Apple is delivering business benefits to the two international subsidiaries, Apple Operations International (AOI) and Apple Sales International (ASI), which was established in Ireland.

Yet although registered in Ireland, AOI until last year had no employees or offices in Ireland. Only one of the three directors AOI originated from Ireland and semuat meeting was held at the company's Cupertino, California, headquarters of Apple.

AOI also do not pay corporation tax at all in the five years ended, although it holds subsidiaries profit of 29.9 billion U.S. dollars between 2009-2012, or 30% of Apple's net profit in the whole world.

While the ASI in 2011 posted a $ 22 billion profit but only pay corporate taxes of 10 million U.S. dollars, or about 0.05%. Though the corporate tax rate in Ireland is 12.5%.

According to the report, Ireland in 1990 signed a special agreement with Apple that allows companies that pay corporation tax of less than 2%.

In addition to Apple, Google and Facebook also established a subsidiary in Ireland, among others, due to a low corporate tax rate. For comparison, the rate of corporation tax in the UK is 26%.

Sources :
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