Leaked documents known as the Paradise Papers reveal Apple seemingly shifted its tax reduction practices to the island of Jersey after there was a crackdown against Irish tax shelters. The island, though a “dependency” of the UK, sets its own laws and is largely beyond the reach of EU legislation.
Apple reportedly moved two subsidiaries from Ireland to Jersey in 2014. Because the region doesn’t usually tax corporate income, it’s potentially enabled Apple to reduce its tax burden.
When Ireland changed its tax laws in 2015, we complied by changing the residency of our Irish subsidiaries and we informed Ireland, the European commission and the United States…The changes we made did not reduce our tax payments in any country. – Apple
Once it was clear Ireland’s policies were changing, Apple followed the advice of Appleby, a Bermuda-based law firm. Appleby encouraged the company to move two subsidiaries, Apple Operations International and Apple Sales International, to Jersey.
