Apple moves international cash to Jersey for tax reasons
Apple has relocated its international cash residency to the island of Jersey, a UK Crown dependency, after Ireland changed its tax laws in 2015. Apple said this was to ensure that tax obligations and payments to the US were not reduced. According to Apple, the debate over its taxes is not about how much it owes, but where it is owed.
“As the largest taxpayer in the world, we’ve paid over £35 billion in corporate income taxes over the past three years – plus billions of dollars more in property tax, payroll tax, sales tax, and VAT,” said Apple. Apple said profits are taxed based on where the value is created. The taxes it pays to countries around the world are based on that principle.
“The vast majority of the value in our products is indisputably created in the United States – where we do our design, development, engineering work, and much more – so the majority of our taxes are owed to the US.” It said reports inaccurately state that it is avoiding tax in the US. Apple said it believes comprehensive international tax reform is essential, and that it has for many years been advocating for simplification of the tax code.
“Reform that allows a free flow of capital will accelerate economic growth and support job creation.
A coordinated legislative effort internationally will remove the current tug of war between countries over tax payments and ensure certainty of law for taxpayers.”