Apple, according to a recent congressional investigation, avoided paying upwards of $70 billion in taxes between 2009 and 2012. Apple has placed a good amount of money in offshore accounts, something to the tune of $44 billion. Apple’s CEO, Tim Cook, said in their defense, “To our knowledge Apple is the largest corporate taxpayer in America.” Mr. Cook told a senate panel Apple paid $6 billion in taxes last year.
How Apple Avoided Paying Taxes
The congressional report found that Apple had avoided paying billions in taxes by using subsidiaries in other countries. Apple created multiple companies that were being run by top employees from California. These companies didn’t have employees themselves; rather they simply collected profits from abroad and paid little to no taxes in the region where the subsidiary is located. The senate panel has said that, while Apple didn’t break any laws in their tax practices, it did exploit numerous tax loopholes to its (financial) advantage.
If you have any questions about your business taxes or what kind of corporate structure your business should emulate, contact Gonzalez & Arrambide, Inc. at 956-447-9009.