Linked by Thom Holwerda on Tue 21st May 2013 21:45 UTC
Legal "There's a disconnect between how Apple CEO Tim Cook sees his company's tax strategies and how some members of the US Senate view it. That became clearer than ever today after Cook and two other Apple executives testified before Congress, explaining why they're holding most of their international income in Irish subsidiaries like Apple Operations International, which declare no tax residency anywhere in the world. AOI hasn't filed a tax return anywhere in the world for the last five years, yet it earned $30 billion in income from 2009 to 2012, according to a Senate report released yesterday." Just because something is legal, doesn't mean it's just. Apple, Google, Microsoft, and many more - these companies might not be breaking any laws, but it's obvious to anyone that what they are doing is scummy.
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It is not obvious...
by brichpmr on Tue 21st May 2013 23:40 UTC
Member since:

That what Apple is doing is 'scummy.' According to Cook, AOI is a holding company where the money has already been taxed elsewhere, and the interest earned on that money is also taxed by the USA at a 35% rate. Cook is calling for a vastly simplified re-structure of the corporate tax system in America....worthwhile to consider and act on, IMHO.

Reply Score: 4

RE: It is not obvious...
by WorknMan on Wed 22nd May 2013 02:06 in reply to "It is not obvious..."
WorknMan Member since:

That what Apple is doing is 'scummy.'

It seems that Apple is doing everything it can to pay as little taxes as it can, without breaking any laws. But the question is, who doesn't do this? For example, I believe that if you drive your own vehicle for business purposes, you can use the cost of gas as a tax write-off. So if I ran my own business, do you think I'm going to do that? Of course I am. I think just about anyone would.

So now we want to blame these large companies for doing the same thing that each of us would do ourselves, but just on a bigger scale? If you ran a large company, would you do the same thing? Or would you say to yourself, 'Gee, I think I'm going to give the government more money than I am required to. Instead it going in my back pocket, why not put it in the back pocket of some corrupt politician instead?' I say F that. If nothing else, give it to charity or something.

Reply Parent Score: 3

RE[2]: It is not obvious...
by BushLin on Wed 22nd May 2013 11:51 in reply to "RE: It is not obvious..."
BushLin Member since:

Except it isn't that simple, it's not like Apple have these companies arranged based on their function and simply pay the appropriate tax...

... like most large multinationals they'll fiddle the books so that the part of their company in a tax haven make all the profit even if that profit is generated elsewhere in reality.

They used to simply move the profit to the haven based offices by charging for "services", I'm sure it's more sophisticated now.

Edited 2013-05-22 11:51 UTC

Reply Parent Score: 1