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Apple Paid Massive $6 Billion in US Corporate Income Tax Last Year
According to a recent report from The New York Times based on investigations carried by US Congress for income tax policies of major tech companies; Apple paid a huge amount of $6 billion as US Corporate Income Tax which is nearly equal to 1/40 of all US Corporate Income Tax collected last year.
The Senate Permanent Subcommittee on Investigations just completed its a year-long examination into the ways adopted by the giant tech companies to eschew paying US corporate income tax. Notably, Apple allocates almost 70 percent of its income to overseas affiliates where tax rates are much lower.
It is now evident that Apple never uses tricks to avoid from income tax and it proceeds legally under US law in this concern. Interestingly, many US politicians believe that nearly all tech giants including Apple practice such sort of ways those protect them to pay income tax which kills the real spirit of corporate tax laws.
In its statement, Apple said it paid “an enormous amount of taxes” to local, state and federal governments. “In fiscal 2012 we paid $6 billion in federal corporate income taxes, which is 1 out of every 40 dollars in corporate income taxes collected by the U.S. government,” it said.
It should be kept in mind that Apple is the pioneer of using the accounting scheme “Double Irish with a Dutch Sandwich”, where profits are routed through Irish and Dutch subsidiaries before finally landing in the Caribbean. Now, thousands of firms adopt that amazing tax model. Apple also has shifted revenue to its Braeburn subsidiary in Nevada and International locales where the company has to bear no or little tax burdens.