May 21 - Reuters European Corporate Strategy Correspondent Tom Bergin gives his take on Apple’s creative offshore tax practises
Last nights and revelations from the permanent subcommittee on investigations. In Washington. Lifted the lead on one of the biggest secrets and corporate taxation. For some years. A people of Covert attacks that area have long wondered how does apple pay such low taxes. On its earnings in particular its overseas earnings the company has paid paid it under 2%. Taxes on net profits of around fourteen billion dollars in 2012. Com and that's despite the fact is that that its main markets than the corporate income taxes in the region of you know I'm 28%. So that's that's been a puzzle for people who we found that the the way that it apple does this. It by -- profits through a and into the incorporated in armament but actually not tax residence and work. So this day as it turns out it is is even more creative then and then. Those of us who have followed the issue. Had expected. Of course other countries to use -- -- as a springboard to to send -- -- -- -- stand to Bermuda and other Caribbean countries. Apple says it doesn't do this. But the -- the revelation that. That -- is -- -- -- these these creative techniques is of course likely to fuel the debate applies today corporate tax forms in the United States.