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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RE[3]: Comment by MOS6510
by Drumhellar on Wed 22nd May 2013 10:05 UTC in reply to "RE[2]: Comment by MOS6510"
Member since:

What is happing now is that the US sees Apple's large cash pile and they want Apple to hand it over without them giving anything in return.

Nothing in return... except powerful IP protection, US pressure for other governments to adopt strong IP protection, apathy within government towards actually doing something to stop China from manipulating their currency against the Dollar in violation of trade treaties, tax policy designed to benefit investors over everybody else, tax policy designed to give advantage to large corporate entities, tax subsidies for being an online store, tax subsidies for being a manufacturer, or even a quality public eduction system all the way up to the college level for training the engineers they eventually hire. Yup. Nothing at all.
(I feel like I should mention the aqueduct.)

Apple lobbied heavily during the Bush administration to get the corporate tax rate lowered, on the promise that they'd spend more within the US. The corporate tax rate was lowered, more exemptions carved out, yet Apple didn't start spending more in the US in any appreciable amount attributable to the reduced rates.
Now, they say if the corporate tax rate is lowered some more, this time they really will spend more money within the US. Really! This time, they mean it!

Apple isn't the only one that does this. GE infamously paid $0 in taxes in 2010(?) off of a couple billion in profits. However, Apple has huge profit margins, and doesn't really do anything anywhere to generate good will. I lived in Silicon Valley when I was in elementary and middle school, and our math and science classes would frequently have volunteers from the major tech companies help teach engineering and math concepts. Intel had the largest presence (Including an annual field trip to one the local fab - child-sized clean-room gear and all.), but we'd get people from HP or Sun, even smaller companies. Never from Apple. They weren't willing to make one of their engineers make the 10 minute drive to our school. They'd sure send sales staff, though.

Reply Parent Score: 3

RE[4]: Comment by MOS6510
by MOS6510 on Wed 22nd May 2013 10:20 in reply to "RE[3]: Comment by MOS6510"
MOS6510 Member since:

It seems Apple doesn't need anything from the US government.

But never mind that. Sure they probably lobbied, like many others, but if they promised to spend more in the US and didn't then maybe the US shouldn't believe their pretty blue eyes.

If they have any laws favoring companies like Apple just change the laws. Isn't that what governments do to govern?

Apple is an US company and those foreign Apple companies looking after the cash are owned and controlled by the US Apple. To me it doesn't seem that difficult to make laws and rules that are fair and logical to benefit from the money Apple makes overseas.

It's not just Apple, they just have a large amount of money, almost every large company does it. Our royal family does it. Even common people store cash abroad to avoid tax or get higher interest. I skip our local village economy if I can get a better deal in the city or on-line.

If you don't like the system fix the system, don't punish the players that follow the rules of the broken system.

Reply Parent Score: 2

RE[5]: Comment by MOS6510
by Drumhellar on Wed 22nd May 2013 23:07 in reply to "RE[4]: Comment by MOS6510"
Drumhellar Member since:

Seeing as how Apple (And others, to be sure) are the ones working hard to keep the system broken, why not try to find ways to extract punishment?

Reply Parent Score: 2