According to the Australian Financial Review publication, Apple has moved almost $9 billion in untaxed profits to Ireland from its Australian operations in the past 10 years. The publication has allegedly obtained 10 years worth of financial accounts for Apple Sales International, which is said to be a secretive Irish company which is at the heart of Appleâ€™s international tax arrangements.
AFR also observes that Apple reported pretax earnings in Australia of only $88.5 million for 2013. However, the Cupertino Company had sent an estimated $2 billion of income from its Australian sales to Ireland via Singapore before that. University of Sydney senior lecturer of taxation law Antony Ting, who has been thoroughly analyzing Appleâ€™s tax arrangements for the past years, said the following:
The same report found out that Apple Sales International company has reported a staggering amount of more than $US100 billion of profits in the last five years. Last monthâ€™s Group of 20 finance ministers met in Sydney and they have decided that the worldâ€™s top economies need to start automatically exchanging information on tax matters from 2015. High-profile US tax commentator Lee *Sheppard told the Financial Review the following:
AFR also explains how the Apple Sales International company works and how Apple transfers money to it in order to avoid taxes.:
One man that could be responsible of this intricate tax strategy is Peter Oppenheimer, who has resigned after serving as Appleâ€™s CFO for the past ten years. However, itâ€™s unlikely that any changes will take place with Appleâ€™s tax strategy after the naming of the new CFO. All in all, what Apple did is perfectly legal, but is it fair? Whatâ€™s your take on this?