According to information obtained by the newspaper, Apple’s three main British subsidiaries — Apple (UK), Apple Europe and Apple Retail UK — have generated a pre-tax profit of £68 million during the last fiscal year that ended in September 2012. The companies reported tax deductions relating to share schemes of £27.7 million, the Financial Times writes. In the previous year, the companies paid £11.4 million in taxes.
From what the newspaper’s sources know, Apple could sidestep UK taxes by awarding shares to its employees. Since the share awards are deductible, Apple is able to avoid paying the taxes.
As the Senate Committee’s investigation shows, Apple’s non-US operating income was generated by its Irish subsidiary, which allegedly pays a tax rate of 0.05% according to the Committee’s calculations.
Despite criticism, Apple CEO Tim Cook says Apple did nothing wrong and emphatically stated that the company does not use tax gimmicks.