How did Apple to pay only 0.005% tax on their profits? – Yucatan on hand

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LONDON (CNNMoney) –

Why the European Union is looking for Apple to pay more than 14,000 million dollars in alleged back taxes

Keep this in mind: in 2014, the giant company paid just $ 50 tax per million won with sales of iPhones and iPads to most of the world, excluding the United States. That represents an interest rate of only 0.005%. Yes, you read right.

How did that could happen?

For decades, Apple has channeled most of its profits from Europe, Middle East, Africa and India through from Ireland. It’s nothing from the other world. Other companies do.

But in the contracts the company held with the Irish government, which date back to 1991, allowed these profits were divided between his office in Ireland and a main office Apple It existed only in theory.

Apple paid the standard tax interest rate on profits Ireland registered office in Ireland. The gains recorded in the main office ghost were tax free, because according to Irish law, he was considered an “enterprise without nationality”.

Guess where most of the profits went.

in 2011, Apple Sales International generated revenue of 16.000 million euros, of which less than 50 million were recorded at the Irish office. The rest was in the “front office” outside the scope of any tax authority.

That agreement also agreed to the Irish government.

Ireland set their corporate tax rate at 12.5% , one of the lowest in Europe, to attract large companies to the country.

Apple, Google, Facebook, eBay and Twitter have their headquarters in the European Union in Ireland.

In addition, generated jobs. Apple has 6,000 employees in Ireland; many of them iMacs manufactured in a factory in Cork, which once was an Irish city with many shortcomings. Apple said it is the largest private source of jobs in the city.

The Member States of the European Union can set their own tax rate. However, European authorities point out that the agreements Ireland welcomed with Apple gave the company a financial advantage over their competition and that it is illegal government assistance.

Apple does not want to pay taxes, although 14,600 million plus interest would have to pay represent just 5% of the 231,000 million dollars in cash that declares in his books.

Fuente_ http://expansion.mx/