Apple paid less than 2% tax on profits outside USA
Apple has disclosed it paid only $713m (£445m) in non-US taxes after racking up an amazing $36.8bn of pre-tax profits outside the United States
The Cupertino tech giant responsible for the iPhone 5 and the recently revealed iPad mini has followed the likes of Google and Facebook in paying low overseas tax rates despite enjoying a rather successful 2012.
Apple paid $713m in corporation tax in the year to September 29. A rate of 1.9 per cent on the $36.8bn profits the company made outside the USA during that time.
The numbers were revealed when Apple handed over its 10-K filing to the US Securities and Exchange Commission and, according to the BBC, much of Apple's European business is channeled through a subsidiary in the Republic of Ireland.
While Britain has a 25 per cent corporation tax rate, the Republic of Ireland only charges 12.5 per cent. Although the rate in Ireland is still a lot higher than Apple's contribution, no suggestion of illegality has been made.
These latest figures could fuel the ongoing argument over companies avoiding the public coffers. Google, Amazon and Starbucks are due to appear before the Commons public accounts committee on Monday to shed some light on why they pay so little.
Chair of the committee, Margaret Hodge told the Guardian: " We want to ask them for an opportunity to explain why they don't pay proper levels of tax in the UK."
Whether Apple is in line for similar treatment remains to be seen, but there's no doubt the company is riding high. It announced an amazing $8.2 billion net profit for 2012 Q4, just a day after revealing the iPad mini to the world.