Apple’s $59bn tax bill

From The Guardian:

Apple’s local efforts to avoid paying higher taxes are part of a larger pattern for the $500bn company, which has long been a pioneer in corporate tax avoidance. Apple pays a 2.3% effective tax rate on its $181bn in cash held offshore, according to Citizens for Tax Justice, a not-for-profit research group focusing on tax policy. Through a series of well-documented offshore manipulations with saucy-sounding names such as the Double Irish with a Dutch Sandwich, the industry giants shield themselves off from the theoretically 35% federal corporate tax rate. Citizens for Tax Justice estimates that Apple would owe $59.2bn in US taxes if the money weren’t funneled into offshore shell accounts.

Criticism over the company’s offshore tax schemes has become more pointed in recent months, both locally in Cupertino and from Apple’s own staff. Steve Wozniak, Apple’s co-founder, said the company should pay a 50% tax: “Jobs started Apple Computers for money, that was his big thing and that was extremely important and critical and good. … [But] we didn’t think we’d be figuring out how to go off to the Bahamas and have special accounts like people do to try to hide their money.”

Link to the rest at The Guardian.