Apple Avoids Billions in Taxes

    SAN FRANCISCO, CA - APRIL 24:  A pedestrian walks by an Apple Store on April 24, 2012 in San Francisco, California. Based on high sales of the iPhone and iPad, Apple reported a 93 percent surge in second quarter earnings with a profit of $11.6 billion, or $12.30 per share compared to $6.0 billion, or $6.40 per share one year ago.  (Photo by Justin Sullivan/Getty Images)

    Justin Sullivan / Getty Images (FILE)

    Apple subsidiaries in low-tax regions have helped the company save an enormous amount in taxes across the globe. A New York Times investigation shows that instead of collecting and investing profits in California, where the company is based, Apple is sending their funds to Reno, Nev., where the corporate tax rate is zero compared with 8.84 percent. The company is doing this around the world, with subsidiaries in places like Ireland and the British Virgin Islands. Last year, the tech giant coughed up $3.3 billion on its $34.2 billion in profits worldwide. Without the inventive, and legal, accounting tactics they've been using, Apple would have to pay an estimated $2.4 billion more in taxes to the United States government alone.

    Read it at The New York Times