#3 Apple Operations International, which provided 30 percent of Apple’s worldwide net profits from 2009 to 2011, doesn’t pay taxes anywhere

This seems like a brilliant point as Apple actually doesn’t pay taxes anywhere. It is the U.S. to decide if it can tax you depending upon where you incorporate your company. Whereas, Ireland’s way of implementation is only when the company is managed and controlled within the nation. So as Apple has incorporated subsidiaries in Ireland and is managing them in the U.S. the point is that Apple does not have to pay taxes in either of the countries. Apple has been doing this for the last five years.

#4 Apple’s U.S. profits are all ending up in Ireland

Besides the avoidance of U.S. taxes on foreign sales of Apple’s products, the company is effectively sending U.S. profits to its Irish subsidiaries. How is this taking place? Well, a simple answer is ‘Transfer Pricing’.

The firm has set up a cost sharing agreement with its Irish subsidiaries that gives them a disproportionate share of profit through research and development that takes place in United States. From 2009 to 2012, $ 4 billion was allocated in research and development costs to its U.S. unit which had profits of $38.7 billion while R & D costs of the Irish subsidiary was $4.9 billion and profit was $74 billion.

Read: What Happened To 5 Biggest Yahoo Acquisitions

Also read: Apple CEO Faces Senate Panel On Tax Issues