Ireland, United States, Arlon discussed on BBC World Service


Matter of tax avoidance under the spotlight once again in the moment will global tax holds ever beer be closed or is it mission impossible the the latest leaks mean apples tax of as our again under scrutiny are comes correspondent andrew walker has been looking at the details while the company appears to have short ground for a new tax haven off to there was a crackdown all niche tax practices in in ireland what if you remember what he did on and was the had revenues from sales outside the us with channeled through companies in arlon put that were effectively staters protects purposes and so they were subject to essentially very very little tax on came under an awful lot of pressure within the european union over this arrangement and dick decides to eliminated now apple wanted to find a new offshore home at its legal advisers went so far to send a questionnaire the firm at the center of the league that firm incident he is named appleby is the similarity of nine to the technology companies and tony coincidental and this questionnaire cost about six jurisdictions and it included this question is it possible to obtain an official assurance of tax exemption and what did apple decide the jurisdiction chose was jersey though we don't know the reasons at least the documents don't make that clear but the fact that he does have his era corporate tax rate foreign companies presumably contributed to the attractiveness of jersey to the company also apart from the papers that apple wanted to keep the move secret one email between partners at the law firm said for those of you who are not aware apple officials are extremely sensitive concerning publicity so why is apple so sensitive because the company's corporate tax arrangements have already attracted a lot of criticism in the us in addition to the european union has already mentioned the company does pay and we'll love corporation tax in the us but he's been paying an average of about four percent on his international profits and his king to keep the money offshore now's below the hearings in congress and the us government would like apple and other companies in similar situations to bring the money back to the.

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