Top US Firms Underpaid UK Taxes: Tech Business Report
An analysis in The Sunday Times showed that Apple (NASDAQ:AAPL) employed legal loopholes and its Irish subsidiary in order to pay only $713 million in overseas corporate taxes in the year up to September 30th, which comes to1.9 percent of its foreign profits of $36.8 billion. That tax rate is down from 2.5 percent in 2011, and far below the corporate tax rates of 35 percent in the United States and 24 percent in the United Kingdom, where Apple is estimated to have avoided taxes of more than $550 million last year. In the meantime, Apple announces that it has sold 3 million iPads in total during the 3 days since the launch of the iPad Mini, saying that, “Demand for iPad Mini exceeded the initial supply.”
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It is reported that Starbucks Corporation (NASDAQ:SBUX) has paid no United Kingdom taxes for three years, while Facebook (NASDAQ:FB), Amazon.com (NASDAQ:AMZN), and Google (NASDAQ:GOOG) paid less than £30 million combined in the face of sales of £3.1 billion. Accordingly, Parliament’s Treasury Select Committee is considering an inquiry into tax avoidance by major American companies and also will examine how to recalibrate the law to stop or at least reduce such avoidance.
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