Thread by @wishzen

How Apple Legally Pays Zero US Tax with a Legendary Irish Goodbye

~THREAD~

We all know Apple

They’re in our pockets, on our wrists and likely listening to every word

Dependable, sexy & trustworthy

Apple’s a triple threat

They’re the girl we notice every time she walks into the room

You may know Apple avoids paying a Dime in US taxes

Here’s how.

Companies pay tax in the country they make the Sale

Your iPhone may be crafted in a Chinese warehouse...

BUT, if it’s sold in the US.

Apple owes US tax on it.

In 2020, Apple’s US revenue was $275 Billion

At the 21% Corporate Rate (reduced from 35%)

On paper, Apple owed $58 billion in taxes

For reference, Apple owes more in US tax per year than the entire Costa Rican GDP

So how does Apple get away with paying $0?

It's Simple: Patents

All of Apple’s products depend on patents

Unlike people/places/things

Patents have no precise value

Herein lies Apple’s ability to play with their Profit numbers

For Each Product

Apple gives their Patents to the Irish subsidiary in Dublin.

The Irish subsidiary then "Rents" their Patents back to US Apple for a fee

When Apple makes sales in the US...

They smirk at the IRS and claim that

- Patents rental fees owed to Dublin are equal or more than total US Sales
- Without a way to disprove, this method is perfectly legal

This takes care of Uncle Sam

But what about Ireland's income on these patent fees?

A sly Loophole makes any money transferred to the Netherlands Tax-Free

So after the 'patent fees' hit Ireland.

1. Apple sends briefly to a Dutch bank account held at a nonexistent company
2. Returns the money to an Irish Subsidiary that is legally a resident of Jersey

Not the ‘Cabs are here’ and ‘GTL’ Jersey…

Jersey is a Self-Governing island in between England and France.

Where the moolah from your iPhone sale can finally rest in peace in time for an afternoon cocktail.

That, my friends, is how Apple pays zero in tax.

So next time you stumble out of a bar at 1am committed without a word of goodbye to your friends...

Know that Apple's Irish Goodbye helps it avoid paying over $50 billion in tax

Fair? Maybe not

Impressive? Without a doubt

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