Apple is estimated to have avoided more than £550m in tax in Britain in 2011. Its latest accounts show UK turnover at just over £1bn and profit at £81.3m, generating a tax bill of £14.4m.
However, analysis of its filings in America suggest a more realistic figure for UK turnover is £6.7bn. This would imply an estimated profit of £2.2bn and, at the then corporation tax rate of 26pc, a £570m tax bill, the Sunday Times reports.
Yes, yes, we all know the difference between tax avoidance and tax evasion. But this isn’t even tax avoidance.
Corporation tax, when selling into any of the EU 27, is due at that one brass plate that is the corporate HW within the EU 27. Selling from Ireland, or Luxembourg, into the UK, is simply not tax avoidance. It is what the system was set up to encourage people to do.
Even HMRC insists that this is not tax avoidance. Why is this so difficult for people to understand?