Technology News
Published: Apr 30, 2012
Digital Sales Allow Apple To Avoid Taxes
by Staff

Tech companies such as Apple are avoiding paying some taxes by building offices in states and countries with lower or zero taxes, The New York Times reported.

Apple built an office in Reno, Nev., to collect and invest the company's profits, and by doing so, the company sidesteps paying higher California state income takes on those profits from their Cupertino headquarters, the Times reported Saturday.

Apple also has offices -- some not more than a letter box or an anonymous office -- in low-tax nations such as Ireland, the Netherlands, Luxembourg and the British Virgin Islands.

The findings illuminate how technology companies in today's digital economy are able to take advantage of tax codes written for the industrial age, the Times said. When it doesn't matter where a downloadable song is purchased, for example, it is much easier for businesses to move profits to low-tax countries.

Over the past two years, the 71 companies in the Standard & Poor's 500-stock index, have paid about a third less than other S&P companies in taxes, the newspaper said. (c) UPI

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