Report Says Apple did not Pay UK Corporate Taxes Last Year
According to the Financial Times report, Apple was able to pay no corporate taxes in the UK last year. Furthermore, the company has been able to get just a 2 percent charge on offshore profits by a set of tactics which greatly helped drop the company’s international tax load. Apple did this by simply sharing awards to employees, which thereby deducting the tax liabilities, and by saving their money on countries with lower tax rates, like the British Virgin Islands. The company’s steps are all legal, but these might stir criticisms for their gimmicks.
Apple CEO Tim Cook pledged in May, before a US Senate panel, that “Apple pays all its required taxes, both in this country and abroad.” He further defended the taxes the company pays, and also brought up the need for tax revisions. Senate lawmakers pressed tax evasion of billions of dollars on Apple. The company is firm in their statement that it does not defy any law on tax, even though it admits that majority of overseas income, which amounts to $100, haven’t been taxed in the US. Apples tax rate in the UK, where it has three subsidiaries namely: Apple UK, Apple Retail UK, and Apple Europe, is roughly 24 percent. This is lower compared to its tax charges in the US, which amounts to 35%. FT added that Apple pays approximately 2% for its overseas operations.
Though Apple’s ways are completely legal, these schemes still make the lawmakers furious, says The Telegraph. UK Prime Minister David Cameron warned such companies last week to “wake up and smell the coffee.” A UK investigation was brought up by Cameron for other giant companies such as Amazon, Starbucks, Netflix, and Skype.