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Apple Denies Guernsey Tax Sheltering Plans

by Jason Gorringe, Tax-News.com, London

19 January 2006

Apple Computer has refuted a report in the UK's Daily Telegraph which suggested that it was planning to launch an operation in Guernsey in order to sell music downloads VAT-free to UK consumers.

The Telegraph had reported that the company was planning to take advantage of the 'loophole' which allows retailers located outside of the EU to sell goods under a certain price to UK consumers VAT-free.

However, the firm countered this week by announcing that although it is looking to increase its presence on the Island, the emphasis of the Daily Telegraph report was "completely wrong", and that the move was intended to benefit only those living in the Channel Islands, not all UK consumers.

"In order to provide an optimum service quality to our customers, we are evaluating the need for a Channel Islands Apple Online store. In the meantime, customers continue to be able to purchase Apple products from our network of local resellers," Apple stated.

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