|Consumer electronics firm Apple, along with internet-search giant Google, are using creative accounting to avoid taxes in Poland, reports Gazeta Wyborcza|
Google Poland and Apple are using creative accounting to avoid paying Polish corporate tax, thus saving millions of złoty a year, according to data compiled by daily Gazeta Wyborcza.
The newspaper reports that the IT giants are avoiding paying taxes in Poland by establishing subsidiaries in countries with lower tax rates, such as Ireland, where corporate tax is 12.5 percent as opposed to the 19 percent Polish companies are obliged to pay to state coffers. Similar reports have appeared in American media about the companies' accounting practices in the United States.
According to sources cited by Gazeta Wyborcza, the combined revenue from Apple and Google’s Polish operations amounts to some zł.2 billion. Apple makes an estimated zł.1 billion from sales in Poland, zł.300 million of which comes from iPad sales. Sales of the iPhone play a significant role as well, but most of these are sold by mobile network operators, who refuse to disclose sales data. Meanwhile, Google's search-based advertising service in Poland is valued at some zł.700 million.
The majority of the income, however, is transferred to their offshore subsidiaries the newspaper found, while the companies pay only a few million złoty each year in tax, far less than would be expected.
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