Over the past decade, Apple has sold gadgets for 26 billion. Although the company has not paid any tax at all in the country.
New Zealand Herald has published an investigative report about Apple's doings, and says that the company is using an agreement between Australia and New Zealand that will allow companies are taxed in the country there controlled from, which in this case is Australia.
Corporate tax in Australia is 30 percent, which is actually higher than the 28 percent that applies in New Zealand. It allows accounting expert Deborah Russell at Massey University wonder what really lies behind, writes The Guardian.
Antony Ting at the University of Sydney told The Guardian that Apple conducts the bulk of its profits to its subsidiary in Ireland, an approach we've written about many times before.
Apple said in a statement that it pays all taxes it is required in Australia and New Zealand, "and the fact is that our effective tax rate was higher than the Australian corporate tax in our last declaration."
Apple's moral argument for its approach where most of the profits go to Ireland to, in theory, go on home to the US goes in simple pull on the main part of the value creation occurs in Cupertino where products are developed and that the sales made in other countries only give a small contribution.
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