More and more revelations are out from Paradise Paper. The revelations on Monday shed light on Apple’s tax avoidance, Formula One Champion Lewis Hamilton, Nike and much more. According to documents by the offshore legal services firm Appleby a US-based International Consortium of Investigative Journalists (ICIJ) concerning secretive offshore deals that have proved deeply embarrassing.
The latest revelations mention about Apple’s tax avoidance strategy which makes a random up shift in their profits. It helped the iPhone maker shift tens of billions of dollars from Ireland to the Channel Islands when it appeared to face a tougher stand on taxes by Dublin.
The report said Apple transferred funds to the small island of Jersey, which typically does not tax corporate income and is largely exempt from European Union tax regulations.
Apple did not immediately respond to the report, but in a statement to a press, it said that Apple company always follows the law in each country where it operates.
The other revelation is about loopholes employed by Nike to reduce tax payments.
The new report said that Nike used a loophole in Dutch fiscal law to reduce its tax rate in Europe to just two percent compared with a 25 percent average for European companies.
The tax savings came from Nike’s use of an offshore subsidiary which charged royalties to the company’s European subsidiaries, the report said.
About Lewis Hamilton
Hamilton avoided paying taxes on his private jet using an elaborate scheme now under investigation by British tax authorities.
The leaked documents showed the driver received a £3.3 million (Dh16 million) tax refund in 2013 after his luxury plane was imported into the Isle of Man, a low-tax British Crown Dependency. He didn’t yet respond to report.