If you run one of the most massive operations in the history of modern capitalism, here's a handy tip: funnel your money to Ireland with a series of shell companies, and you'll pay a tax rate of two percent. It's saved Apple $74 billion over the past three years.

The NYT relays a report by the Senate Permanent Subcommittee on Investigations, which details AAPL's attempts to not exist. For tax purposes. Using dummy firms like "Apple Sales International" and "Apple Operations International," the latter of which is incorporated in Ireland but only has two employees—in California. It's perfectly legal (ergo a company ought to do these things), and Apple CEO Tim Cook says the company actually supports tax reform. That is, if this reform includes "lower corporate income tax rates" and a reasonable tax on foreign earnings that allows free movement of capital back to the US." Until then, it's off to the emerald hills. You can read the Senate report in its entirety below.

Subcommittee Memo on Offshore Profit Shifting Apple by Dave Weigel

Advertisement