According to the New York Times, Apple is stashing much of its cash hoard on the small island of Jersey, which typically doesn’t tax corporate income. The tech giant has accumulated more than $128 billion in profits offshore that’s untaxed by the U.S. and hardly touched by any other country.
Jersey, officially the Bailiwick of Jersey, is a Crown dependency of The Crown located near the coast of Normandy, France. Not part of the United Kingdom, it’s a self-governing parliamentary democracy under a constitutional monarchy, with its own financial, legal and judicial systems. Jersey is ranked as a tax haven by many organizations with the Financial Secrecy Index ranking Jersey as 16th, one rank behind the United Kingdom as of 2015.
An Apple spokesman, Josh Rosenstock, declined to answer most questions about the company’s tax strategy. He did tell the New York Times that Apple had told regulators — in the U.S and Ireland and at the European Commission — about the reorganization of its Irish subsidiaries. “The changes we made did not reduce our tax payments in any country,” he said.