Media claims that Apple avoided billions in tax ‘wrong’

Media reports that tech giant Apple has avoided paying billions in corporate tax by routing profits through Ireland are false, according to an economics lecturer.

The Australian Financial Review reported on Thursday that Apple “shifted $8.9bn in untaxed profits through a tax haven structure in Ireland over the last decade.” The Irish Times also reported that Apple paid only €36m on $7.11bn profits at its Irish unit.

However, UCC economics lecturer, Seamus Coffey said both figures are incorrect. The $8.9bn was generated through sales in Australia and is not subject to corporate tax because Apple’s headquarters is in California and that is the point at which corporate tax is applied, he said.