Apple Offshore Taxes: Complex Tax System Allowed for Apple To Place Profits From Its U.S. Operation Into an Unrelated Irish Company

A major strategy that Apple utilized to avoid paying taxes was to divided the legal and economic sectors of its intellectual property rights and have them be sent to different subsidiaries where it would be most advantageous for tax purposes according to Senator McCain.

Apple kept the legal property rights in the United States where it could utilize the Federal court system to defend its property. But the economic segment was sent to Ireland, where it would pay the special negotiated rate of 2%. 95% of Apple’s research takes place in the U.S. while less the 1% takes place in Ireland.

McCain took a direct shot at Apple saying they were giving a new meaning to Apple’s old slogan of “Think Different.”

How much do you trust the information in this article?

Gabriel Rodriguez

Gabriel Rodriguez is currently studying for a Masters in Applied Economics at Georgetown. He is a graduate of New College of Florida with a degree in Economics. He is interested in econometrics, statistical analysis, behavioral economics, and developmental economics.

MORE FROM

Sam Brownback: 3 things to know about Trump’s nominee for ambassador-at-large for religious freedom

Brownback was a key sponsor of the International Religious Freedom Act of 1998, which created the job he's now nominated for.

Hundreds rally in Times Square to protest Donald Trump’s transgender military ban

“I’m out here to support my trans brothers and sisters who have been serving our military for years and years and years."

Several Republicans are strongly denouncing Trump’s military transgender ban

“Anybody who wants to serve in the military should serve in the military. I don’t agree with the president.”

Worried Trump might pardon himself? Blame Alexander Hamilton.

Hamilton might not have been "thinkin' past tomorrow" when he pushed for broad executive privileges.

Harry Truman desegregated the military 69 years ago. Today, Trump banned transgender troops.

Truman wanted to end discrimination in the military "as rapidly as possible."

Here is a timeline of Donald Trump’s relationship with Jeff Sessions

Trump continued his Twitter attacks on Sessions Wednesday — reportedly while the embattled attorney general was in the White House.

Sam Brownback: 3 things to know about Trump’s nominee for ambassador-at-large for religious freedom

Brownback was a key sponsor of the International Religious Freedom Act of 1998, which created the job he's now nominated for.

Hundreds rally in Times Square to protest Donald Trump’s transgender military ban

“I’m out here to support my trans brothers and sisters who have been serving our military for years and years and years."

Several Republicans are strongly denouncing Trump’s military transgender ban

“Anybody who wants to serve in the military should serve in the military. I don’t agree with the president.”

Worried Trump might pardon himself? Blame Alexander Hamilton.

Hamilton might not have been "thinkin' past tomorrow" when he pushed for broad executive privileges.

Harry Truman desegregated the military 69 years ago. Today, Trump banned transgender troops.

Truman wanted to end discrimination in the military "as rapidly as possible."

Here is a timeline of Donald Trump’s relationship with Jeff Sessions

Trump continued his Twitter attacks on Sessions Wednesday — reportedly while the embattled attorney general was in the White House.