Lobbying group Citizens for Tax Justice has called out Apple, Google and Microsoft and others for what it described as “accounting tricks” in which companies “pretend” to be based overseas for tax purposes. The claims were made in a report entitled Offshore Shell Games 2015.
Many multinational corporations use accounting tricks to pretend for tax purposes that a substantial portion of their profits are generated in offshore tax havens, countries with minimal or no taxes where a company’s presence may be as little as a mailbox. Multinational corporations’ use of tax havens allows them to avoid an estimated $90 billion in federal income taxes each year.
The group said that Apple has paid “a miniscule 2.3 percent tax rate on its offshore profits,” many of which have been entered into Apple’s books in Ireland. CTJ says that if Apple paid U.S. tax rates on those profits, it would owe $59.2 billion.
The controversy over the legitimacy of Apple’s overseas tax arrangements is not, of course, anything new … expand full story