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NY Times report: Apple legally sidesteps billions in taxes every year

NY Times report: Apple legally sidesteps billions in taxes every yearAccording to a New York Times Sunday report, iPhone-maker Apple legally sidesteps billions of dollars in taxes worldwide every year, with its tax-circumventing strategy chiefly involving the use of its subsidiary units in Ireland, the Netherlands and other low-tax countries.

Highlighting one Apple's legal tax-evading approaches, the published report revealed that the small office which the company has Reno, Nevada, has chiefly been set up for the purpose of collecting and investing its profits --- since the corporate tax rate in Nevada is zero; while that in California, is 8.84 percent.

With the filings by Apple already having shown that the company has legally allocated approximately 70 percent of its profits overseas, in countries where tax rates are generally much lower than those in the US, the NY Times report has drawn attention to a study by former Treasury Department economist Martin A. Sullivan which estimates that, has Apple not resorted to tax-sidestepping strategies, the company would have paid a whopping $2.4 billion more in federal taxes in 2011.

Despite Apple's claims that it is one of the biggest taxpayers in the US, the NY Times report notes that Apple is apparently a pioneer in developing ways to sidestep taxes, and that the company "serves as a window on how technology giants have taken advantage of tax codes written for an industrial age and ill-suited to today's digital economy."