Subscribe free to our newsletters via your
. Energy News .




TRADE WARS
Apple sent billions offshore to avoid Australia tax: report
by Staff Writers
Sydney (AFP) March 06, 2014


Apple shifted billions in untaxed profits from its Australian operations to Ireland over the past decade, a report said Thursday, as the government vowed to stop global companies from dodging their fair share of tax.

An investigation by the Australian Financial Review obtained 10 years worth of financial accounts for Apple Sales International -- an arm of the organisation it described as the "secretive" Irish company at the heart of the group's global tax arrangements.

The newspaper said the US tech giant moved an estimated Aus$8.9 billion (US$8.1 billion) in untaxed profits from Australia to a tax haven structure in Ireland, paying just 0.7 percent of its turnover in tax.

Last year, Apple declared pre-tax earnings in Australia of only Aus$88.5 million after sending an estimated Aus$2 billion from its Australian sales to Ireland via Singapore, it reported.

Apple in Australia declined to comment to AFP, but the company has previously said it has complied with the law and done everything required by the tax office. There is no suggestion it has done anything illegal.

Finance Minister Mathias Cormann said in response to the report that the government was determined to recover tax that companies have inappropriately avoided and that Canberra was pursing the issue through the G20.

"Businesses operating around the world are not necessarily paying their fair share of tax where they're earning their profits," he said, without naming any firm.

"Our view is, and that is a view that's shared around the world, businesses should pay their fair share of tax where they earn profits."

Trade Minister Andrew Robb added to the Australian Broadcasting Corporation: "In most cases the companies are doing what is legal, but is it fair?

"Is it what they should do as companies that are benefiting greatly from the Australian commerce?

"No they're not, and we've got to look in a global sense at how to tackle this problem, that's why it's on at the G20."

Concerns are mounting that global companies, particularly those involved in the digital and Internet sectors, can reduce their tax bills by shifting profits around the world to areas where rates are lowest.

Ahead of a meeting of G20 finance ministers in Sydney last month, IMF chief Christine Lagarde said accounting for revenues from global businesses was a "big ongoing problem and process".

She urged governments to radically rethink international tax arrangements to deal with it.

The G20 meeting agreed to new measures to crack down on international tax evasion, including the automatic exchange of information between member nations.

The Organisation for Economic Cooperation and Development is expected to present a report looking at the increasingly digitalised global environment to another G20 meeting in Cairns, in northern Australia, in September.

Apple and other multinational US companies have also been under fire in the US Congress, with lawmakers accusing them last year of using a web of foreign subsidiaries to dodge taxes.

Senators Carl Levin and John McCain held a hearing last May that examined offshore profit shifting and tax avoidance by Apple through the use of three Irish subsidiaries that claimed they were not tax residents anywhere, saving tax on billions of non-US income.

Apple chief Tim Cook told the hearing the issue was "complex" and often misunderstood.

Research into the California-based multinational's global tax minimisation strategy by Antony Ting, senior lecturer in Taxation Law at the University of Sydney Business School, is due to be published in the prestigious British Tax Review next month.

Ting told AFP that the figures given in the Australian Financial Review's investigation were not surprising.

"Apple has been successful in avoiding tax of US$44 billion worldwide in the last four years alone," he said, citing his research, adding that other multinationals were doing the same.

"But its structures are perfectly legal. That is the problem and governments should be doing more to close down these loopholes."

.


Related Links
Global Trade News






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





TRADE WARS
Using stolen computer processing cycles to mine Bitcoin
San Diego CA (SPX) Mar 04, 2014
A team of computer scientists at the University of California, San Diego, has taken an unprecedented, in-depth look at how malware operators use the computers they infect to mine Bitcoin, a virtual currency whose value is highly volatile. Researchers examined more than 2,000 pieces of malware used by Bitcoin mining operations in 2012 and 2013. They were able to estimate how much money oper ... read more


TRADE WARS
Dubai donors pledge $11 mn for UN-led 'green' economy push

Geothermal offers cost-effective alternative to volatile fuel prices and propane shortages

US moves ahead on massive Africa power bid

Renewable Generation up 30% Last Week as Gas Consumption Plummets 35%

TRADE WARS
US researchers propose Earth's infrared radiation as renewable energy source

New Spy Technology to Spawn Oil Revolution

Seismic testing for Atlantic oil and gas?

Nanotracer tester tells about wells

TRADE WARS
Taming hurricanes

Wind farms can tame hurricanes: scientists

Draft report finds no reliable link between wind farms and health effects

Czech wind power generation up 'disappointing' 15 percent in 2013

TRADE WARS
Sunpreme Launches Premium Solar 2.0 Maxima GxB Solar Modules

ReneSola Provides High-Efficiency Modules to 11.7MW Solar Project in Italy

Unirac Supports Collegiate Solar Decathlon Sponsored by US DoE

Trina Solar announces WEEE Directive compliance

TRADE WARS
Ukraine tightening nuclear security

Fire hits Japan nuke plant, no radiation leaks: operator

Greenpeace protests Europe's ageing nuclear plants

Ukraine crisis fuels debate on Moscow bid to expand Czech nuclear plant

TRADE WARS
Boeing, South African Airways Explore Ways for Farmers to Grow More Sustainable Biofuel Crops

Entomologists update definitions to tackle resistance to biotech crops and pesticides

Plants convert energy at lightning speed

Methane leaks from palm oil wastewater are a climate concern

TRADE WARS
The Next Tiangong

No Call for Yutu

What's up, Yutu

China's Jade Rabbit rover comes 'back to life'

TRADE WARS
EU environment ministers to debate 2030 climate framework

Drought forces water rationing on millions of Malaysians

A large part of Europe could be flooded by the middle of the century

Climate change won't reduce deaths in winter




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement All images and articles appearing on Space Media Network have been edited or digitally altered in some way. Any requests to remove copyright material will be acted upon in a timely and appropriate manner. Any attempt to extort money from Space Media Network will be ignored and reported to Australian Law Enforcement Agencies as a potential case of financial fraud involving the use of a telephonic carriage device or postal service.