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.
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
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!
