Foreign media reports that Apple set up offices around the world to avoid tens of billions of dollars in taxes.

Guangming Online \ According to the New York Times, electronic giant Apple collects investment company profits by setting up offices around the world to avoid taxes, with the evaded amount reaching billions of dollars. \ The New York Times reported on Saturday that an Apple office in Reno, Nevada has a corporate tax rate of zero. The California-based tech giant uses this method to legally avoid taxes on profits. California's corporate tax rate is 8.84%. \ Thanks to the breakthrough sales of the iPhone and iPad, especially strong demand in China and other Asian markets, Apple reported last week that its profit for the first quarter ending March 31 reached $39.2 billion. \ The New York Times cited Apple executives saying that setting up offices in Reno, Ireland, the Netherlands, Luxembourg, the British Virgin Islands, and other low-tax areas to reduce global taxes is all done through legal procedures. \ According to a former Apple executive involved in drafting tax avoidance policies, 'Apple has its own corporate strategy and will leverage the advantages of differences between tax regions.' \ The report said Apple has a subsidiary in Reno called Braeburn Capital, used to manage and invest the company's funds. If these investments are successful, Apple's Reno office can avoid paying taxes. \ Former Apple executive Robert Hatta, who was responsible for retail marketing for Apple's iTunes in the European market, said that routing transactions through Luxembourg can reduce the company's tax payments. \ Hatta told the New York Times, 'We set up an office in Luxembourg because the tax rate there is low.' \ He explained, 'Downloading is different from tangible goods transactions; downloads cannot be physically touched. It is the same whether you download from iTunes in France or iTunes in the UK. If you download from iTunes in Luxembourg, this transaction is treated as occurring in Luxembourg.' \ In a statement to the New York Times, Apple said that the company 'conducts all its business in full compliance with ethical standards, applicable laws, and accounting rules.' \ The New York Times responded, 'We are very proud of what Apple has contributed; the amount of taxes Apple pays is enormous and greatly benefits local, state, and federal governments.' (Kuang Guoqiang) \*This post content is sourced from Sina Technology*