Apple Strategizes to Reduce Tax Rate and 1 Hot Stock Seeing Action Today
A report in the Sunday Times says Apple (NASDAQ:AAPL) used tax avoidance strategies, entirely legal, such as routing its European and British business through a subsidiary located in an industrial estate in County Cork, Ireland, to effectively reduce its tax rate for the year to September 30 to just 1.9% from 2.5% last year. According to the report, Apple avoided paying taxes of as much as £550m in Britain through such measures.
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The mounting outrage in the UK about the low taxes paid by foreign companies doing business in the country has led the Treasury Select Committee to consider an investigation into such ‘avoidance,’ and to weigh the action by government to plug the relevant loopholes. According to the report in the Telegraph, Starbucks (NASDAQ:SBUX) has paid zero taxes during the past three years, while Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB) and Google (NASDAQ:GOOG), which had sales of £3.1B, have paid taxes under £30M.
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