Faizel Patel, Radio Islam News – 07-11-2017

Technology company Apple says none of its operations were moved from Ireland and that changes made to its corporate structure in 2015 were specially designed to preserve tax payments to the United States, and not to reduce taxes anywhere else.

Reuters reports the statement yesterday from Apple comes following criticism of its tax affairs after reports based on the “Paradise Papers” showed that the iPhone maker shifted key parts of its business to Jersey as an offshore tax haven in a move to maintain a low tax rate.

The “Paradise Papers” are a trove of financial documents leaked mostly from Appleby, a prominent offshore law firm.

A number of high profile South Africans and local institutions have also been flagged in the biggest tax leak since the Panama Papers.

The Paradise Papers, highlights damning cases of tax abuse and questionable business practices involving multinational companies, high level politicians, celebrities, wealthy executives and even royals.

The documents were obtained by German newspaper Süddeutsche Zeitung and shared with the ICIJ and a network of more than 380 journalists in 67 countries, including amaBhungane and the Financial Mail in South Africa.

Apple says it pays billions of dollars in taxes to the United States at the statutory 35 percent rate on investment income from its overseas cash.

Last month, Apple responded to questions from the ICIJ and others revealing that when Ireland changed its tax laws in 2015, the company complied by changing the residency of its Irish subsidiaries and informed Ireland, the European Commission and the United States.

The changes made did not reduce its tax payments in any country, according to the company. Apple is the largest taxpayer in the world, paying over $35 billion in corporate income taxes in the last three years.

Twitter: @FaizelPatel143