This strategy was primarily achieved by establishing a subsidiary in Ireland, which was called "Apple Inc.'s European Headquarters," though it had a relatively small number of employees, it possessed a vast amount of profit.
Apple Inc. transferred most of the profits from its global sales through this subsidiary, thus reducing its tax burden in America.
Furthermore, Apple Inc. also established special purpose companies in Ireland, transferring profits to tax havens like the Cayman Islands, thereby reducing its tax burden even further.
This strategy took advantage of the differences in tax systems between countries, moving profits to regions with lower tax rates, hence lowering the overall tax obligation.
Besides Apple Inc., as mentioned before, renowned companies such as Gugo, Microsoft, Oracle and others essentially adopted this kind of tax avoidance strategy.
