Paradise Papers: Apple's secret tax bolthole revealed
The world's most profitable firm has a secretive new structure that would enable it to continue avoiding billions in taxes, the Paradise Papers show.
They reveal how Apple sidestepped a 2013 crackdown on its controversial Irish tax practices by actively shopping around for a tax haven.
It then moved the firm holding most of its untaxed offshore cash, now $252bn, to the Channel Island of Jersey.
Massive GDP spike When the "double-Irish" loophole was shut down, Ireland also created new tax regulations that companies like Apple could take advantage of.
One of the companies that Apple moved to Jersey, ASI, had rights to some of Apple Inc's hugely valuable intellectual property. line If ASI sold the intellectual property back to an Irish company, the Irish company would be able to offset the enormous cost against any future profits.
And since the IP holder, ASI, was registered in Jersey, the profits of the sale would not be taxed. It appears Apple has done just that.
There was an extraordinary 26% spike in Ireland's GDP in 2015 which media reports put down to intellectual property assets moving into Ireland. Intangible assets rose a massive €250bn in Ireland that year.