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BY BOB HOLT
NEWJERSEYNEWSROOM.COM
Most major corporations always look for tax shelters to minimize their tax bills. Tech giant Apple has an office in Reno, Nevada that manages the company’s immense profits.
There’s only one thing. Apple’s headquarters are in Cupertino, California.
Offices in Reno and other subsidiaries are legal ways Apple uses to reduce its worldwide tax bill by billions of dollars every year. According to a New York Times report, the corporate tax rate of California is 8.84 percent, while that of Nevada is zero.
Apple's accountants have reportedly found methods to transfer about 70 percent of its profits to lower taxed subsidiaries overseas. Reports say Ireland, with a population of less than 5 million, provided more than one-third of Apple's worldwide revenues. Without the use of shelters, Apple's United States federal tax bill might have been around $2.4 billion higher in 2011.
According to Northern Voices Online, the report says Apple paid $3.3 billion in taxes globally on $34.2 billion in profits from 2011, for a tax rate of 9.8 percent. And the 71 technology companies in the S&P 500, including Apple, Google, Yahoo, and Dell pay about one-third the average tax paid by the rest
Apple said that it “has conducted all of its business with the highest of ethical standards, complying with applicable laws and accounting rules,” according to 9 to 5 Mac. Apple said they “pay an enormous amount of taxes, which help our local, state and federal governments.”
The company’s statement also said that in the first half of fiscal year 2012, their U.S. operations generated almost $5 billion in federal and state income taxes, making them among the top payers of U.S. income tax.”
Apple Insider reported that that company goes on to say they have created 47,000 total full-time jobs in all of the 50 states over the past several years.
Christopher Bergin in the Huffington Post says that Apple is doing what the law allows. He suggests that if anything is unfair it's the tax code, as given to us by our elected officials.
