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Apple 'paid no UK corporation tax last year'

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Apple allegedly paid no UK corporation tax last year despite its British subsidiaries posting millions of pounds in profit.

The Cupertino firm used tax deductions from share awards to its employees to wipe out its liability, according to The Daily Telegraph.

A security guard stands next to an area expected for customers to queue up at the Apple store in Hong Kong

© PA Images / Vincent Yu/AP



The broadsheet claims that accounts filed at Companies House indicate that Apple made a pre-tax profit of £16 million on sales of almost £1 billion in the fiscal year ending September 29, 2012.

However, the iPhone maker offset tax deductions relating to share schemes of £27.7 million against its corporation tax liabilities in a move that also allowed it to claim tax credits of £3.8 million.

Apple's tax practises have previously come under scrutiny in the US following reports that the company reduces its liability through the use of various "offshore entities".

Apple CEO Tim Cook speaks during an Apple event in San Francisco, Wednesday, Sept. 12, 2012.

© PA Images / Jeff Chiu/AP



CEO Tim Cook hit out at these allegations, insisting that the firm has not broken a single law in this regard.

"[We have paid] all the taxes we owe - every single dollar," he said. "We don't depend on tax gimmicks. We don't stash money on some Caribbean island."

Cook claims that Apple paid more than $6 billion (£3.9bn) in tax last year.

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