Apple saved tens of billions dollars on corporate tax with the help of its daughter companies in Ireland. This conclusion was made by the authors of U.S. Senate report, the Associated Press writes.
According to the report, in 2011 the company avoided at least $3.5 billion dollars tax, and in 2012, $9 billion.
“Apple claims to be the largest U.S. Corporate taxpayer, but by sheer size and scale, it is also among America's largest tax avoiders,” the senior Republican says.
At the same time the Senate report states that Apple has avoided taxes in a legal way using the differences between the American and Ireland taxation law. For example, one of the iCompanies in Ireland received $22 billion income in 2011 and paid taxes only for $10 billion.
As a result of this investigation, the congressmen came to the conclusion that American tax legislation has serious oversights, which allow companies to escape from requirements of the government.
The report was released ahead of Apple CEO Tim Cook's speech at Senate on optimization of paying taxes by corporation and amid the discussion of budget deficit and income tax reduction. The latter, in the opinion of Republicans, will entice investors at the economy. May 17 Tim Cook also advised to reduce the tax.
Many companies register their branches in Ireland because the corporate tax there is only 12.3%.
Recently the tax policy of many large corporations, including Google, has been criticized. The leading search engine was accused of tax reducing with the help of its Dublin office.
