Paradise Papers: ‘Apple moved funds to Jersey’
TECH giant Apple moved offshore funds to the Channel Islands after a crackdown on tax laws in Ireland, according to the latest claims to emerge from the Paradise Papers leak.
The company is alleged to have rearranged its affairs, moving the firm holding most of its untaxed overseas cash to Jersey, after changes were made to controversial Irish tax practices, the BBC said.
The Jersey government has now announced it will be investigating allegations made in the Paradise Papers, and said that it was “not satisfactory” for companies to claim tax residence on the island without “demonstrating a substance” there.
A spokesman said: “Jersey does not want abusive tax avoidance schemes and expects financial services providers to abide by a voluntary code to say they will not take on this kind of business.
“If this proves to be such business, we will consider how to strengthen our arrangements, if necessary by amending our legislation to introduce a substance test.
“It is not satisfactory for a foreignregistered company to claim tax residence in Jersey without demonstrating a substance here. These allegations will be investigated.”
Apple said its new structure did not reduce tax payments in any country and “ensured that our tax obligation to the United States was not reduced”.
The company added that it was the largest taxpayer in the world and had paid £26bn in corporation tax over the past three years.
The Paradise Papers leak, which involved the disclosure of 13.4 million previously secret documents, has seen major companies and public figures linked in reports to secretive overseas arrangements. There is no suggestion that those involved acted illegally.
Racing driver Lewis Hamilton was among the latest to be named, as the BBC claimed he avoided tax on his £16.5m private jet after it was imported into the Isle of Man in 2013. A spokesman for the driver said everything was “above board”.
Tory treasurer Lord Ashcroft and US President Donald Trump’s commerce secretary, Wilbur Ross, were also said to feature in the leaked reports.