Apple and Taxes

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  • Apple avoided taxes by creating three offshore corporations in Ireland, a known tax haven.[1]
  • Apple used a “cost-sharing agreement” with its Irish subsidiaries, which transferred part ownership of intellectual property created in the U.S. to Ireland to avoid paying taxes in the U.S.
  • Apple also used a tax loophole which allowed them to declare to the IRS that its three offshore subsidiaries were one company.
  • Forbes: Apple “has become famous over the years for deploying legions of accountants to devise offshore tax avoidance mechanisms with names like ‘double Irish with a Dutch sandwich.’”[2]
  • July 2020: An EU court ruled that Apple would not have to pay Ireland $14.8 billion in back taxes, which overturned a 2016 ruling that Apple had been giving illegal tax breaks by Dublin.
  • Fair Tax Mark reported that Apple had the fifth biggest tax gap of the six companies examined in its study.
  • 2010 To 2019: Apple paid $93.8 billion in income taxes on $548.7 billion in profits after taking in $1,888 billion in revenue.
  • Apple’s cash tax paid amounted to 17.1 percent of its profits, despite a federal headline tax rate of 35 percent in the United States.