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How Apple Group Succeeded to Avoid Billions of Euros in Taxes by Shifting Profits into Subsidiaries from Ireland

Author

Listed:
  • Neagu Oana Maria

    (Bucharest University of Economic Studies)

Abstract

The paper explores a subject that is getting more and more popular, namely how companies useloopholes to report domestic profits as being earned by subsidiaries in a tax haven, with the purposeto avoid paying taxes. I have chosen to present the case of the largest tech company in theworld: Apple Inc. Apple Inc., for two subsidiaries created in Ireland, benefited of a tax ruling agreement that wasin force between 1991 and 2014, attributing the profits to a head office with no tax residency andtherefore not taxable in Ireland or anywhere. The European Commission performed an in-depth investigation on the State Aid implementedby Ireland to Apple, and while it revealed the undue tax benefits that Ireland granted to the company,amounting 13 billion euros, that should be recovered, Apple claims that it does not owe asingle euro in any country around the world.

Suggested Citation

  • Neagu Oana Maria, 2018. "How Apple Group Succeeded to Avoid Billions of Euros in Taxes by Shifting Profits into Subsidiaries from Ireland," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 206-210, July.
    • Handle: RePEc:ovi:oviste:v:xviii:y:2018:i:1:p:206-210
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    More about this item

    Keywords

    tax haven; subsidiaries; state aid; corporate tax;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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