In 2007 Edward Kleinbard coined the “stateless income” phrase to describe a tax loop hole used by large multinational corporations. Select funds without residence are not taxed by any country. This $1.5 trillion dollar tax loop hole came to light in May of this year.
According to Reuters, the U.S. Internal Revenue Service is pursuing tax enforcement cases against companies over the issue of “stateless income,” a senior agency official said on Wednesday.
If the “stateless income” loop hole is closed then estimates are that Apple would owe over $9 billion dollars in taxes. Apple states using the tax loop hole is not illegal.