How can Apple claim profits are made somewhere that does not have employees?

The subsidiaries — Apple Operations International and Apple Sales International — had a unique agreement with the tax authorities of Ireland that allowed Apple to use those businesses with no employees in Ireland to hold its foreign earnings
http://www.washingtonpost.com/business/technology/with-complex-web-of-offshore-entities-apple-avoids-taxes-senate/2013/05/20/a59daea6-c16c-11e2-bfdb-3886a561c1ff_story.html

?2013-05-20T14:47:15Z

Favorite Answer

They get to pay a much lower tax rate on their profits by doing so. Meanwhile, the government of Ireland gets some tax money without actually having to spend anything to promote economic development.

?2013-05-20T21:40:48Z

I'm sure they're donating large amounts to the Committee For Acceptance of Transgendered Snail Darters or some such thing.

Hand me the sun2013-05-20T21:39:18Z

Online sales.

Anonymous2013-05-20T21:39:23Z

Its all so very wrong. Im sure not smart enough to understand what they're up to.