The Securities and Exchange Commission has cleared Apple Inc. of any potential tax law violations after months of examining the company’s complex and sometimes controversial financial and tax practices.
The Securities and Exchange Commission has cleared Apple Inc. of any potential tax law violations after months of examining the company’s complex and sometimes controversial financial and tax practices.
According to Forbes, the SEC has given Apple the green ligh to continue utilizing its existing tax strategies and even wrote a letter to affirm that the company’s financial and tax maneuvering fall in line with generally accepted accounting practices. This includes the use of the so-called “Double Irish and the Dutch Sandwich,” which has made headlines recently as a controversial tax strategy.
Under this method – which has been used by behemoths such as Google, Facebook, and Hewlett Packard – companies set up Irish and Dutch subsidiary companies in low- or no-tax jurisdictions. They can then funnel profits through the first Irish subsidiary to the Dutch company, and then back to a second Irish subsidiary which sends the profits to a tax haven. Google was able to funnel roughly $12 million in royalty payments to Bermuda last year – 25 percent more than in 2011 – and reduce its overseas tax rate to about five percent. Now that Apple has been cleared for similar methods, it’s speculated that more corporations may follow suit.
For instance, Twitter is expected to adopt this tax practice in the future, as it has recently set up an international company “Twitter International Company” in Ireland, according to Daily Gadgetry. Rather than paying the 35 percent corporate tax rate if the company funneled profits back to the U.S., Twitter could end up paying a significantly lower rate in Ireland. However, it would still be subject to the 35 percent rate if it decided to repatriate profits to the U.S.
Although more tax law cases are emerging that call corporate strategies into question, new legislation prohibiting long-established practices has yet to be introduced.
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
