On Monday night, a Panorama report on the so-called Paradise Papers claimed that two subsidiaries of Apple were relocated to the Island to keep $252 billion of untaxed cash offshore.
It is claimed that the companies were set up in Jersey after Apple ‘shopped around’ for a new jurisdiction following the closure of a tax loophole in Ireland which the firm exploited until 2013.
According to the reports, legal advisory firm Appleby, which was a subject of the Paradise Papers data hack, advised Apple to move the companies to Jersey.
The Panorama documentary featured BBC reporter Richard Bilton doorstepping Appleby’s Jersey office on the Esplanade, where staff denied that the US tech giant had any presence.
Apple’s actions were not illegal and the companies have since moved out of Jersey.
It said the new structure had not lowered its taxes, and stated that it remained the world’s largest taxpayer, paying about $35bn in corporation tax over the past three years.
In a statement, the States said: ‘Jersey does not want abusive tax avoidance schemes operating in the Island and expects financial services providers to abide by a voluntary code to say they will not take on this kind of business.
‘If this proves to be such business, we will consider how to strengthen our arrangements, if necessary by amending our legislation to introduce a substance test.
‘It is not satisfactory for a foreign registered company to claim tax residence in Jersey without demonstrating a substance here.
‘These allegations will be investigated and we are asking the ICIJ to provide all relevant documents to support this action.’
