The New York Times reported that Apple, who recently reported $11.6 billion in pure profit for the last quarter, uses clever tactics to avoid paying possibly billions of dollars in taxes. One way it does so is by setting up small offices the world over in places where tax laws are beneficial to them. It also uses investment techniques with the profits it makes to make them untaxable. The report listed an Apple office located in Reno, Nevada as an example. There is no corporate tax rate in Reno, while California’s corporate tax rate is 8.84%.
Apple also has offices in Ireland, the Netherlands, Luxembourg, and the British Virgin Islands, all places where corporate taxes are low or non-existent. Apple doesn’t do anything illegal by doing this. They follow the law to the letter, but the New York Times is basically accusing them of strategizing to find loopholes in tax codes that they can exploit for their own gain.
Apple did weigh in with a statement in the report. They reiterated that everything they have done complies with laws and accounting rules, and then went on to brag on themselves for all the contributions and taxes they do pay that help the communities where their facilities are located.