The company was able to sidestep the taxes by awarding stock awards to employees. Apple has found a way to save itself from paying any taxes to the U.K., a new report out of the country claims. Despite generating pre-tax profits of 68 million pounds ($103.6 million) during its last fiscal year ended September 2012, Apple didn't pay a single dime in taxes to U.K. authorities, The Financial Times reported recently, citing corporate filings with the U.K. government. In the prior year, Apple paid 11.4 million pounds. So, how did Apple sidestep those taxes? According to the Financial Times, the company awarded millions in stock awards to employees. Since those awards are deductible, it was able to completely eliminate all of the taxes it would have been forced to pay on its profits. Related stories Nearly half of all smartphones sold in Europe a Samsung handset Apple reportedly applies for 'iWatch' trademark in Japan Smartphone market share consolidates at top, study shows Apple: Don't make nuclear weapons using iTunes How much will Apple's new Mac Pro cost? Apple, like most other major companies, has developed a slew of techniques to save itself from paying taxes worldwide. The company's efforts have drawn some fire in Europe where Apple funnels more than 80 percent of its operating income generated internationally into an Ireland-based subsidiary. In that market, the company pays a tax rate of just 0.05 percent -- much lower than tax rates in the countries where the sales are actually generated. Earlier this year, congressional investigators documented Apple's ability to reduce its tax billions by billions of dollars a year. All of the company's tactics were completely legal, but they helped the company save at least $74 billion in offshore cash from being taxed. Despite criticism on that, Apple CEO Tim Cook believes his company has done nothing wrong, saying at the D11 Conference in May that the firm doesn't "use tax gimmicks."
The company was able to sidestep the taxes by awarding stock awards to employees.
Apple has found a way to save itself from paying any taxes to the U.K., a new report out of the country claims.
Despite generating pre-tax profits of 68 million pounds ($103.6 million) during its last fiscal year ended September 2012, Apple didn't pay a single dime in taxes to U.K. authorities, The Financial Times reported recently, citing corporate filings with the U.K. government. In the prior year, Apple paid 11.4 million pounds.
So, how did Apple sidestep those taxes? According to the Financial Times, the company awarded millions in stock awards to employees. Since those awards are deductible, it was able to completely eliminate all of the taxes it would have been forced to pay on its profits.
Related stories
- Nearly half of all smartphones sold in Europe a Samsung handset
- Apple reportedly applies for 'iWatch' trademark in Japan
- Smartphone market share consolidates at top, study shows
- Apple: Don't make nuclear weapons using iTunes
- How much will Apple's new Mac Pro cost?
Apple, like most other major companies, has developed a slew of techniques to save itself from paying taxes worldwide. The company's efforts have drawn some fire in Europe where Apple funnels more than 80 percent of its operating income generated internationally into an Ireland-based subsidiary. In that market, the company pays a tax rate of just 0.05 percent -- much lower than tax rates in the countries where the sales are actually generated.
Earlier this year, congressional investigators documented Apple's ability to reduce its tax billions by billions of dollars a year. All of the company's tactics were completely legal, but they helped the company save at least $74 billion in offshore cash from being taxed.
Despite criticism on that, Apple CEO Tim Cook believes his company has done nothing wrong, saying at the D11 Conference in May that the firm doesn't "use tax gimmicks."
