TQ has previously reported that a US Senate Subcommittee has called on Apple’s CEO Tim Cook and several other executives from the company to explain the practice of booking two-third of their global profits through their Irish subsidiary. This tactic was used back in 2011 in order to avoid taxes. Cook and company were able to dodge the US Senate Subcommittee during the inquiry because Apple used loop holes in the US corporate tax system to avoid various taxes, but shortly after that an Irish group asked multinational companies including the iOS device maker to provide them with tax records. The Irish group asked the companies to provide these details because after US Subcommittee’s inquiry, an investigation revealed that a number of Apple’s subsidiaries in Ireland are not officially tax residents. As a result of that several people raised concerns over how Apple and other companies are paying their taxes in the country.
This once again has brought Apple into the spot light, as according to an accounting and finance lecturer in Limerick University, Sheila Killian, “Less money goes in aid to the south than flies from the south in capital. If you allow your tax system to be used by multinational firms to facilitate that kind of flight, that’s very problematic.”
“How can we look anybody in the eye out there and defend the type of austerity measures that this government is introducing when we’re unwilling to take companies in [before parliament] who are not paying their fair share in this state?” says finance spokesman of Sinn Fein, Pearse Doherty.
“It can only be presented as this committee protecting these multinational firms who pay no tax here, who don’t employ anybody and who don’t pay any tax internationally. I think it makes a mockery out of this committee, an absolute mockery.”
However, it seems that Apple has not run out of luck, as an Irish parliamentary committee decided not to start a investigation on the tax arrangements of multinational companies operating in the country. The decision was explained by the chairman of the finance committee of Irish parliament, Ciaran Lynch, who said that:
“If there has been suggestions that companies have been ‘off side’ on tax, then the right people to go are those who make the rules. You don’t go to Manchester United or Chelsea when they’re accused of being offside – you go to the referee, or to Fifa or Uefa.”
Source: iPhoneinCanada
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