Linked by Thom Holwerda on Sun 29th Apr 2012 12:22 UTC
Apple "Apple, the world's most profitable technology company, doesn't design iPhones here. It doesn't run AppleCare customer service from this city. And it doesn't 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." Sure, this is all legal for companies to do (and Apple obviously isn't alone) but it does show you how much sense of morality companies have. Answer: none. But hey, it's legal, and the law is never wrong, right?
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RE: They aren't escaping the taxes
by shotsman on Sun 29th Apr 2012 15:38 UTC in reply to "They aren't escaping the taxes"
shotsman
Member since:
2005-07-22

The more relevant question is, if Apple makes an iPhone in China and then sells it to a Chinese citizen, why does the state of California try to tax that transaction?

They might not BUT Uncle Sam taxes US Companies on their WORLDWIDE Earnings. There are agreements in place between the US and other governments but there is legislation in place whereby the US Gov can deem the taxes paid by a company in one jurisdiction 'too little' and levy what they thinks as appropriate taxes. This clause is not used very often.

The US Gov is almost unique in deeming that ALL income of people and companies from wherever in the world it eminates is liable to US Taxes.

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