Apple 'shopped around' for a new haven to help them avoid billions in taxes after a loophole they used in Ireland was shut down, the Paradise Papers have revealed.

The tech giant decided set up a secretive new offshore structure in Jersey after sending a tax wish list to the authorities, leaked documents have revealed.

Apple is alleged to have sent a questionnaire to the British Virgin Islands, Bermuda, the Cayman Islands, Mauritius, the Isle of Man, Jersey and Guernsey asking what they could offer.

The document asks how transparent their tax system is, demanded assurances on 'tax exemption' and questioned if there was any 'credible' political opposition that could threaten any tax deal.

An email from a lawyer Bermuda also spelled out that Apple is 'sensitive to publicity' and work was on a 'need to know' basis only.

According to the BBC Apple later moved a subsidiary holding vast amounts of untaxed offshore cash to the Channel Islands after plumping for Jersey.

Apple was last night accused of secretly shifting key parts of its empire to Jersey to keep its tax rate low, leaked Paradise Papers have revealed

The tech giant decided set up a secretive new offshore structure in Jersey after sending a tax survey to the authorities (pictured)

Apple was last night accused of secretly shifting key parts of its empire to Jersey to keep its tax rate low.

Although it has done nothing illegal, the disclosure is likely to raise fresh questions over the tax arrangements of the world’s most profitable firm.

Until 2014, the US tech firm had been exploiting legal loopholes to funnel all its sales outside of America – about 55 per cent of its revenue – through Irish subsidiaries.

These were effectively stateless for taxation purposes, and so incurred hardly any tax.

But after the EU announced in 2013 that it was investigating the arrangement, the Irish government decided that firms incorporated there could no longer be stateless for tax purposes.

Paradise Papers names royalty, politicians and the rich and famous The 13.4million confidential documents reveal some of the world's richest, most famous and most influential people allegedly invested in a Cayman offshore fund. The leak names: Royalty and heads of state past and present Queen Elizabeth II President of Colombia Juan Manuel Santos, Ex-German Chancellor Gerhard Schröder Former Prime Minister of Pakistan Shaukat Aziz Former Prime Ministers of Canada Jean Chrétien, Paul Martin and Brian Mulroney US officials Wesley Clark, former presidential candidate Gary Cohn, director of the National Economic Council Cabinet officials Blairo Maggi and Wilbur Ross Rex Tillerson, Secretary of State Stars Madonna and Bono Big business Allianz, Bayer, Siemens, Glencore, Apple, Facebook, McDonald's, Nike, Uber, Walmart and Yahoo! Advertisement

In 2014, emails from Apple’s legal advisers to the law firm at the centre of the Paradise Papers leak, Appleby, enquired about possible destinations for its cash – and if such a move could become ‘publicly visible’.

The firm also asked if there was a ‘credible opposition party or movement’ that could move to upgrade lax tax laws, while considering using destinations like Bermuda, the Cayman Islands, Mauritius and the Isle of Man.

To emphasise the level of confidentiality, one email between senior partners at Appleby read: ‘For those of you who are not aware, Apple are extremely sensitive concerning publicity. They also expect the work that is being done for them only to be discussed amongst personnel who need to know.’

Apple ultimately chose to relocate the companies controlling most of its cash to Jersey – where corporation tax rate for foreign firms is zero.

The Paradise Papers apparently show that Apple Operations International (AOI) and Apple Sales International (ASI), were managed from Appleby’s office in Jersey from early 2015 for a year, allowing Apple to continue avoiding billions in tax.

Crucially, when Ireland changed its tax law it allowed companies incorporated there before the end of 2014 to continue being run from tax havens until 2020.

Apple said the new structure had not lowered its taxes and that it remained the world’s largest taxpayer – paying about £26billion in corporation tax over the past three years. Tim Cook, Apple’s CEO, said in 2013 that the firm pays ‘all the taxes we owe’ and ‘does not stash money on some Caribbean island’.

The company said in a statement last night: ‘When Ireland changed its tax laws in 2015, we complied by changing the residency of our Irish subsidiaries and we informed Ireland, the European Commission and the United States.

‘The changes we made did not reduce our tax payments in any country.’

One email sent between senior partners at the law firm said: 'For those of you who are not aware, Apple are extremely sensitive concerning publicity. They also expect the work that is being done for them only to be discussed amongst personnel who need to know'

Apple has been funelling its worldwide sales through Ireland, where its headquarters are in Cork (pictured)

Until 2014 it had been exploiting a financial loophole in the US and Ireland known as the 'double Irish'.

It let Apple funnel its sales through Irish subsidiaries that were effectively stateless meaning it paid as little as 0.005% tax on its European profits in some years.

Tim Cook, Apple’s CEO, said in 2013 that the firm pays ‘all the taxes we owe’ and ‘does not stash money on some Caribbean island’ - but has come under increasing pressure over the company's tax affairs

The amount was a stark contrast to the Irish corporation levy of 12.5% or the US rate of 35% allowing the iPhone manufacturer to keep billions of pounds extra in profits.

But after the EU announced a probe into the tax arrangements in 2013, Apple was forced to find an offshore base that would serve as a tax residency for its subsidiaries in Ireland.

The leaked Paradise Papers revealed that the following year Apple's legal advisers sent documents to law firm Appleby asking for a recommendation on which jurisdiction would be best.

It ultimately chose Jersey which has a 0 per cent corporation tax rate for foreign firms.

In its emails to Appleby, Apple asked whether it would be possible to 'obtain an official assurance of tax exemption' in countries such as Bermuda and the British Virgin Islands, the BBC reports.

Concerned about the political climate, it also asked: 'Are there any developments suggesting that the law may change in an unfavourable way in the foreseeable future?'

One email sent between senior partners at the law firm said: 'For those of you who are not aware, Apple are extremely sensitive concerning publicity.

'They also expect the work that is being done for them only to be discussed amongst personnel who need to know.'

Paradise Papers Q&A: Explosive documents reveal how the rich and powerful protect their wealth What are the Paradise Papers? More than 13 million leaked secret corporate files, about half of which belong to offshore law and corporate services provider Appleby, which has ten offices around the globe. There also documents from corporate registries in 19 tax havens. These are mostly Caribbean and Atlantic islands such as Bermuda, Grenada and the Bahamas, but also include Malta, Lebanon, Labuan (an island territory in Malaysia), Samoa, Vanuatu, the Cook Islands and the Marshall Islands. They cover the period between 1950 and 2016. Is this the same as the Panama Papers? The Panama Papers involved millions of files leaked from Panamanian law firm Mossack Fonseca, showing how some of their clients laundered money, dodged sanctions and avoided tax. This is a separate leak, although will raise many of the same questions. Who got the documents, and how? The German newspaper Suddeutsche Zeitung obtained the files and shared them with 95 other media organisations around the world. In all, 381 journalists in 67 countries have been analysing the material for one year. Suddeutsche Zeitung has not revealed its source. What do the leaks contain? Documents outlining the tax and financial affairs of hundreds of people and companies connected to Appleby and the 19 tax havens, with many appearing to have invested or sheltered huge amounts of cash in offshore tax havens. Who do they involve? Multinational companies, wealthy individuals, heads of state, politicians and sports stars from around the world, including many from the UK. Some of the biggest names to emerge so far include the Queen, Facebook and Donald Trump's cabinet members and advisers. Why is it controversial to put money offshore? Offshore tax havens typically offer low or zero tax rates to non-residents who keep money there. Experts estimate that around $10 trillion (£7.6 trillion) is held offshore around the world. That money would potentially otherwise be taxed in the owner's home country, meaning governments are potentially missing out on billions in revenue. Critics also say the secrecy makes it easy for companies to hide wrongdoing. Will this cause a row about tax avoidance? Further evidence of the extent of cash being held in tax havens is certain to spur anger and calls for a crackdown on tax avoidance practices. However, recent leaks including the Panama Papers may have created a certain level of 'leak fatigue', denting the documents' impact. Advertisement

Dubbed the 'Paradise Papers', the leak is second only to last year's Panama Papers and again exposes how the rich and powerful shield wealth offshore.

Hundreds of individuals and companies reportedly have had their overseas investments exposed by the files, which are also said to reveal that major global companies have exploited offshore schemes to avoid tax.

First obtained by the German newspaper Suddeutsche Zeitung, the documents stem from two offshore service providers and company registries from 19 tax havens, the Guardian reports.

The International Consortium of Investigative Journalists oversaw the project.

Last year Apple was hit with a record £11billion bill by the European Commission.

The watchdog found the arrangements dating back to the early 1990s were illegal under state aid rules and gave Apple favourable treatment over other businesses.

Competition Commissioner Margrethe Vestager said the maker of iPhones paid just 1 per cent tax on its European profits in 2003 and 0.005 per cent in 2014.

Ms Vestager said Apple was paying just €50 in tax on every €1million of profit it made in 2014.

At the time a spokesman for the firm said: 'Apple follows the law and pays all of the taxes we owe wherever we operate. We will appeal and we are confident the decision will be overturned.'

Ireland tried to fight the EU's decision, fearing it may force out several multinational corporations who have set up shell-companies in the EU state to benefit from its tax rules.

While the competition watchdog slapped the country with a deadline of January 3 this year, Ireland is no closer to raking in the funds and is only expected to have pinpointed the exact amount of aid it dished out to Apple by March 2018.

The Commission took a double swipe at US tech industry by landing Amazon with a bill of about 250 million euros (£221.5 million) in back taxes after ruling that the firm's sweetheart tax deal with Luxembourg broke state aid rules.

Apple has had a base in Ireland since 1980, long before it became the global brand it is today thanks to its iPhones, iPads and App Store.

It employs about 5,500 people in the country, with its biggest operations in Cork.