AU$9bn Apple profit moved from Australia to Ireland: Report

Summary:Apple has moved almost AU$1 billion of profit each year for 10 years out of Australia, and into a Double Irish sandwich that allows the company to pay less than 50 cents of tax on every $1000 of income.

US technology giant Apple has moved almost AU$9 billion in untaxed profits from its Australian operations to an Irish tax haven in the past 10 years, media reports say.

Fairfax Media claims to have obtained a decade's worth of financial accounts for Apple Sales International, the Irish company at the centre of Apple's international tax arrangements.

The accounts reveal the mark-up that Apple charges for intellectual property on its global products, The Australian Financial Review has reported.

Last year, Apple reported pre-tax earnings in Australia of only AU$88.5 million after sending an estimated AU$2 billion from its Australian sales to Ireland via Singapore, where Apple negotiated a secret tax deal in 2009, it said.

Apple Sales International has reported more than $100 billion of profits in the last five years, but its accounts indicate that it has paid less than 50 cents in tax on every $1000 of income, the AFR said.

The report comes after last month's group of 20 finance ministers meeting decided that by November, the world's top economies would start to deliver effective and practical measures to counter tax avoidance .

G20 members expect to start automatically exchanging information on tax matters from 2015.

Independent Senator Nick Xenophon said the report showed that Apple is "rotten" and the government must act.

"When it comes to paying tax, it seems that this apple is rotten to the core," Senator Xenophon told reporters in Canberra on Thursday.

"This, if true, is a scandal."

Apple has been contacted for comment.

Topics: Apple, Australia

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