This is from the New York Times website. April 28, 2012 How Apple Sidesteps Billions in Global Taxes By CHARLES DUHIGG and DAVID KOCIENIEWSKI RENO, Nev. Apple, the worlds most profitable technology company, doesnt design iPhones here. It doesnt run AppleCare customer service from this city. And it doesnt manufacture MacBooks or iPads anywhere nearby. Yet, with a handful of employees in a small office here in Reno, Apple has done something central to its corporate strategy: it has avoided millions of dollars in taxes in California and 20 other states. Apples headquarters are in Cupertino, Calif. By putting an office in Reno, just 200 miles away, to collect and invest the companys profits, Apple sidesteps state income taxes on some of those gains. Californias corporate tax rate is 8.84 percent. Nevadas? Zero. Setting up an office in Reno is just one of many legal methods Apple uses to reduce its worldwide tax bill by billions of dollars each year. As it has in Nevada, Apple has created subsidiaries in low-tax places like Ireland, the Netherlands, Luxembourg and the British Virgin Islands some little more than a letterbox or an anonymous office that help cut the taxes it pays around the world. Almost every major corporation tries to minimize its taxes, of course. For Apple, the savings are especially alluring because the companys profits are so high. Wall Street analysts predict Apple could earn up to $45.6 billion in its current fiscal year which would be a record for any American business. The rest of this story can be read here.