Apple Paid $6 Billion In Federal Income Tax In 2012
In 2012, Apple paid roughly $6 billion in federal income taxes. While Apple avoided paying some taxes by allocating 70 percent of its income to foreign banks where taxes are lower, what the company did pay actually amounted to 1/40th of all the income tax collected from corporations during 2012.
As of now, all of Apple’s tax avoiding techniques look to be completely legal under United States law. One of the methods that Apple used to avoid some taxation is the “Double Irish With a Dutch Sandwich” method. Apple would reportedly send its profits through Irish and Dutch subsidiaries and then place it in banks in the Caribbean. Apple was reportedly one of the first companies to use this method. However, it is now extremely popular among major corporations and large companies.
Apple also saved a bit of money by placing revenue in its Braeburn subsidiary in Nevada and in some international locales. Apple pays little to no income tax on those revenues.
Despite all of this, Apple claimed that its ”conducted all of its business with the highest of ethical standards, complying with applicable laws and accounting rules” in a recent statement. This statement has been made before Apple’s earnings call, which is set to take place on the 23rd of January.