ROTTEN TO THE CORE..
THE RICH & FAMOUS WHO THINK IT’S OK TO AVOID PAYING TAXES Apple puts £190bn in haven PM is ‘soft on the dodgers’
APPLE moved £190billion of its cash offshore to avoid billions more in taxes, investigators claim.
The world’s most profitable firm was outed along with a bunch of other rotten tax avoiders for using a secret structure enabling it to enjoy an ultra-low tax rate of 2% – 33% lower that the US tax rate of 35%.
Labour leader Jeremy Corbyn said: “We are talking about tens of billions that are effectively being leached from our vital public services by a super-rich elite that holds the taxation system and the rest of us in contempt.”
The revelation came in more leaked Paradise Papers, the same documents that showed £10million of the Queen’s cash was invested in a tax haven.
Mr Corbyn also suggested Her Majesty should apologise as Theresa May was accused of being “soft” on tax dodging after refusing to launch an offshore register or a public inquiry.
The secret documents – dubbed the “parasite papers” – from offshore law firm Appleby have revealed the financial dealings of politicians, celebrities, corporate giants and business leaders.
They showed how it helped Apple sidestep a crackdown by shopping around for a tax haven.
Until 2014, Apple exploited a loophole in tax laws in the US and Ireland known as the “double Irish”.
But, after the EU announced in 2013 it was probing the arrangement, the Irish government shut it down.
So Apple then moved the firm holding most of its untaxed offshore cash – now worth £190billion – to the Channel Island of Jersey.
And leaked emails make it clear that greedy Apple bosses wanted nobody to know. One email sent between senior partners at Appleby said: “For those of you who are not aware, Apple [officials] are extremely sensitive concerning publicity.”
Apple has done nothing illegal. Boss Tim Cook has insisted: “We pay all taxes we owe, every single dollar. We do not depend on tax gimmicks.”
Apple chose Jersey, a UK Crown dependency which has a 0% corporate tax rate for foreign companies.
Documents show Apple’s two key Irish subsidiaries, Apple Operations International, believed to hold most of Apple’s £190billion overseas cash hoard, and Apple Sales International, were managed from Appleby’s office in Jersey from the start of 2015 until 2016.
Apple said: “Changes did not reduce our tax payments in any country.”
In 2017 Apple made £34billion outside the US and paid just £1.25billion in taxes to foreign governments, around 3.7%.
The company sold its billionth iPhone last year. And it enjoys a market share of around 40% in the UK.
Meanwhile, Mrs May was accused of being “soft” on tax avoidance. And Philip Hammond’s failure to answer Commons questions over the “biggest tax scandal of this generation” was branded “unacceptable” by Labour. Shadow Chancellor John McDonnell said: “The Chancellor and the Prime Minister are hiding on this issue because they want to hide from their record. The Tories are soft on tax avoidance for not committing to a public register or a public inquiry.”
Downing Street was unable to say whether Mrs May or her husband Philip hold cash in tax havens because their investments are in a blind trust.
Mrs May claimed HMRC had collected £160billion more in tax revenue since the Tories came to power.
Meanwhile, Mr Corbyn suggested The Queen should say sorry for having £10million in a tax haven.
He said: “Anyone putting money into tax havens in order to avoid taxation in Britain should do two things – not just apologise for it but also recognise what it does to our society.”
Last night U2’s Bono, named in the papers over a scheme, said: “I have been assured by the company it is fully tax compliant.”
Former US Democrat presidential candidate Bernie Sanders warned of an emerging “international oligarchy” of billionaires.
The PM and Chancellor are hiding from their record on tax JOHN MCDONNELL IN THE COMMONS YESTERDAY