Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comThe Firm
201-896-4100 info@sh-law.comThe 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.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
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!