The NY Times article regarding Apple’s tax evasion techniques has drawn a lot of attention, especially when you take a look at the statistics regarding how much money in taxes Apple Inc. avoids every year.
Apple is not the only tech giant that has found ways to avoid paying fair taxes in the United States. Google and Amazon have also been using the same tax evasion techniques as Apple.
An infographic (posted below) was recently published by MastersDegreeOnline.org that breaks down the techniques these companies are using to avoid paying U.S. taxes and provides statistics as to exactly how much money Apple has avoided paying in taxes.
At a time when the United States and Europe are experiencing one of the worst economic situations in recent history, three of the most profitable companies in the United States are avoiding taxes. At the same times, the average American is struggling to make ends meet while taxes are still being deducted from their paychecks.
Does this sound fair to you?
Apple Tax Evasion Statistics Infographic Highlights:
- Apple, Google and Amazon pay, on average, 33% less in tax money than the average U.S. company.
- Some U.S. industries are taxed at 33% of their income while the internet industry pays an average of 5.9% of their income in taxes.
- In 3 years, Google lowered it’s taxes by $3 billion to a rate of 2.4%.
The technique Apple and others use to evade U.S. taxes is known as “Double Irish with a Dutch Sandwich”:
- Profits are routed through Irish subsidiaries (no surprise Google’s European headquarters is in Dublin).
- Money transfers are made tax free from the Netherlands.
- The money is then transferred to “tax shelters” in the Caribbean.
- Apple would have paid an extra $2.4 billion in 2011 had they not used this tax evasion technique.
- In 2011, Walmart, Home Depot and Target paid 3X as much in taxes as Apple.
- In the first two quarters of 2012, Apple made 3X as much profit as the State of California’s entire debt.
- In 2009, Apple became the World’s most profitable company but their tax rate dropped from 25% to 9.8%.