Think different, Apple tells the world. The Cupertino company, whose creations have defined our technological age, apparently applies the same innovative thinking to its tax evasion strategies.
Stuffing revenue in some low-tax, high-privacy bank in the Caribbean? 'Bout as forward-thinking as a Blackberry. Apple, as the New York Times reported today, uses nothing less than the iPhone 5 of tax havens, exploiting the loopholes of the international tax system in such a way that billions of dollars in profits have not been listed in any tax filing anywhere.
At the center of the operation is an Ireland-based subsidiary called Apple Operations International, which collected $30 billion in income between 2009 and 2012. Over the last five years, Apple Operations International has not filed a tax return in any country.
As USC law professor Edward Kleinbard told the Times, "There is a technical term economists like to use for behavior like this: Unbelievable chutzpah."More »