Steve Jobs’ Final Reality Distortion: Billions of Dollars in ‘the Holy Grail of Tax Avoidance’

 
 
 

 According to the New York Times, Apple’s tax returns over the past few years are more dodgy then a fat kid in gym class, as the company set up a “web of subsidiaries” across several continents to avoid billions of dollars in U.S. taxes.

The company shifted about $74 billion to offshore accounts between 2009 and 2012. In 2011, one subsidiary in Ireland paid Ireland about 0.005% in taxes from $22 billion on pretax earnings. Another subsidiary has paid nearly nothing on almost $30 billion in profits since 2009.

Compared to the company’s reported effective tax rate of 24-32%, the new findings would put the rate closer to 20.1% — a difference of more than $8 billion over a three year period.

The funny thing is that the company is not breaking any laws — they’re just pulling a Romney! One congressional staff member described the current corporate tax code as “playing Whack-a-Mole,” and the next Senate hearing on Apple’s tax avoidance will be Tuesday.

And even with the very-clearly organized gimmicks, Tim Cook is expected to emphasize that “Apple does not use tax gimmicks” in his testimony Tuesday (according to a pre-released text of his speech), as well as emphasizing that the company is, indeed, America’s largest corporate income tax payer, with $6 billion.

Looks like David Einhorn was onto something with his ‘iPrefs’ theory — Apple is literally the Jewish grandmother hoarding all her cash right now.