Skip to comments.Apple 'avoiding billions in global taxes,' report claims
Posted on 04/29/2012 6:51:24 AM PDT by Sub-Driver
Apple 'avoiding billions in global taxes,' report claims AFP 11 hrs ago
Gadget giant Apple is avoiding billions of dollars in taxes by setting up small offices around the world to collect and invest the company's profits, according to The New York Times.
Saturday's report said an office in Reno, Nevada, where the corporate tax rate is zero, was one of many that the California-based technology giant uses to legally sidestep state income taxes on some of its gains.
California's corporate tax rate is 8.84 percent.
Record sales of iPhones and iPad tablet computers, particularly in China and other parts of Asia, saw Apple report last week that it made a $39.2 billion profit in the quarter ended March 31.
The Times quoted Apple executives who said the Reno office and others in Ireland, the Netherlands, Luxembourg, the British Virgin Islands and other low-tax places were among the legal methods the company was using to reduce its global tax bill.
The newspaper said Apple had "devised corporate strategies that take advantage of gaps in the tax code," citing former executives who had helped craft those policies.
In Reno, Apple uses a subsidiary named Braeburn Capital to manage and invest the gadget company's money, the report said, and when those investments succeed, the Nevada address shields the profits from being subjected to tax.
(Excerpt) Read more at news.yahoo.com ...
They paid ZERO direct. . . . . .
Does anyone actually check to see how these articles are written?
Companies will always do this.This is why the Corporate income tax rate should be 0.
Hooray for Apple; power to the people
Biden's global alternative minimum tax.
Yes - and the fact that corps just collect the tax from individual consumers [higher prices], individual workers [lower wages], or individual investors [reduced ROI.]
Corps don't pay bills [including taxes], individuals pay them.
If you want the populace to be aware of the cost of government, taxing non-individuals is not helpful. If, however, you want to hide the cost of government then tax corporations and withhold taxes per paycheck. Oh wait... we do that.
Technical note: “avoiding” taxes is legal. “Evading” taxes is not.
Though the Laffer Curve, that when taxes are raised beyond certain levels, people will change their investments to avoid paying them, thus resulting in lower tax revenues, is usually thought to apply to individuals, a modified version also applies to corporations.
Corporations are under peculiar stresses, because they do not, as things, profit from their industry. Their profits are used to continue their industry with internal investments, and to pay shareholders dividends for underwriting their capitalization. That is why a corporation with a net income of billions only keeps a modest balance of “cash on hand”, because cash money just sits idle.
Thus taxing corporations is in effect double taxation, as its shareholders are also taxed on the same money. And this gets particularly odd when corporations are multinational, because they have to deal with multiple efforts at taxation on the same income.
Since this requires hiring a lot of people just to insure that the corporation is in legal compliance, for the rest of the year, those people have just one job: to figure out tax strategies so that the corporation has to pay less taxes. So that it can avoid taxes.
Some of this is comparable to what happens in the US with high-tax, high-regulation states and lower-tax, less-regulation states. That is, business flees the former to set up shop in the latter. And it applies to countries just like it applies to states.
This began in earnest when leftist countries decided they had a “cash cow” in profitable industries, so nationalized them, thinking it was “free money”. But, in that this is effectively corporate slavery, neither the corporations nor their investors were willing use their money to subsidize some leftist thug’s bank account. So in those countries, the nationalized corporations rapidly collapsed.
And it doesn’t take a lot of this before corporations, like Apple, realize that their paying *any* corporate tax is pretty much just a small scale version of nationalization. Unearned, unfair taxation of them for “free money”.
I’m sure the writer of the article took no deduction on his personal taxes. Otherwise he would be avoiding.
But...but...then there would be no need for lobbyists and no bakshish for the politicians who write the freakin' tax code in the first place.
If you make money leeches and parasites will appear.
“California’s corporate tax rate is 8.84 percent.”
The “progressives” who have been running California into massive debt over the past several decades are beginning to reap what they have sown: the producers are leaving the state and those remaining are the takers (government employee union members and welfare kings and queens) who contribute little to nothing in the taxes required to pay for the largesse they are getting.
Compounding the problem are the “environmentalists” who have been trying to kill any kind of use of California’s natural resources. I will feel no sorrow for Governor Moonbeam and his Democrat henchmen when they sink California into bankruptcy and I will oppose any kind of federal bailout for them.
Where's the beef?
If I invest in a company, I certainly hope they will devise methods to avoid taxes. I certainly do that same thing every year.
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