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How Apple Sidesteps Billions in Taxes (Where's the "Fair Share" for Apple?)
ny times ^ | 4/29/2012 | CHARLES DUHIGG and DAVID KOCIENIEWSKI

Posted on 04/30/2012 3:24:33 AM PDT by tobyhill

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.

Apple’s headquarters are in Cupertino, Calif. By putting an office in Reno, just 200 miles away, to collect and invest the company’s profits, Apple sidesteps state income taxes on some of those gains.

California’s corporate tax rate is 8.84 percent. Nevada’s? Zero.

Setting up an office in Reno is just one of many legal methods Apple uses to reduce its worldwide tax bill by billions of dollars each year. As it has in Nevada, Apple has created subsidiaries in low-tax places like Ireland, the Netherlands, Luxembourg and the British Virgin Islands — some little more than a letterbox or an anonymous office — that help cut the taxes it pays around the world.

(Excerpt) Read more at nytimes.com ...


TOPICS: Extended News; News/Current Events
KEYWORDS:

1 posted on 04/30/2012 3:24:38 AM PDT by tobyhill
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To: tobyhill

Kudos to Apple! Now if you want to level the playing field cut corporate taxes to zero in all of the states.

Oh can’t do that? Well that’s your problem then.


2 posted on 04/30/2012 3:31:17 AM PDT by The Working Man
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To: tobyhill

There is nothing legally or ethically wrong with this strategy. Around fifteen years ago...Microsoft threatened the US government with the hint that they might take the company to Canada. They ended up with some great deals, which were compliments of various Senators and Congressmen.

I would imagine that half the major companies left in California today....are looking at the idea of moving their operation out.


3 posted on 04/30/2012 3:33:08 AM PDT by pepsionice
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To: tobyhill

Did they break any laws? Warren Buffet could perhaps give them some pointers on breaking some.


4 posted on 04/30/2012 3:34:47 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: pepsionice
Nothing wrong with it but as long as Obama keeps playing two-ends against the middle then it will take the one issue he has somewhat going for him, Obama’s “fair share” campaign.
5 posted on 04/30/2012 3:36:55 AM PDT by tobyhill (Fight Fire With Fire)
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To: driftdiver
No they didn't break any laws but this should take the issue away from Obama if Mittens had any smarts. Obama attacks the oil companies and Mittens takes on the leftist techies.
6 posted on 04/30/2012 3:39:55 AM PDT by tobyhill (Fight Fire With Fire)
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To: tobyhill

We see this all the time from the libs, but they ignore companies like GE who support the move toward socialism.

Is there one person in this country who pays the most income taxes possible? No, everyone does what they can to minimize their tax.


7 posted on 04/30/2012 3:42:59 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: tobyhill
Setting up an office in Reno is just one of many legal methods Apple uses to reduce its worldwide tax bill by billions of dollars each year.

"Legal Methods" nothing wrong with that. Smart moves on their part.

I am surprised the New York Times did not use the term "Controversial Loopholes" in this article.

The NYT could use a some smart moves rather than laying off personnel.

8 posted on 04/30/2012 3:45:30 AM PDT by TYVets (Pure-Gas.org ..... ethanol free gasoline by state and city)
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To: driftdiver

As they should pay the minimum but oil companies have additional taxes added to them called 18.5 cents per gallon tax.


9 posted on 04/30/2012 3:45:53 AM PDT by tobyhill (Fight Fire With Fire)
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To: tobyhill

We all know it really doesn’t matter what the tax rates are if your company makes a desirable product - Apple Mac or oil companies. The increase in taxes will be passed on in the final consumer price. WE will pay for the tax hike, not the corporations!


10 posted on 04/30/2012 3:46:40 AM PDT by REPANDPROUDOFIT (General, Sir, I don't mind at all if you call me "Ma'am"!)
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To: tobyhill

We all know it really doesn’t matter what the tax rates are if your company makes a desirable product - Apple Mac or oil companies. The increase in taxes will be passed on in the final consumer price. WE will pay for the tax hike, not the corporations! Nothing wrong with that, but Dems never say it.


11 posted on 04/30/2012 3:47:10 AM PDT by REPANDPROUDOFIT (General, Sir, I don't mind at all if you call me "Ma'am"!)
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To: TYVets
The Slimes accidentally outed their own Lib companions in an attempt to promote Obama’s “fair share” agenda.
12 posted on 04/30/2012 3:47:51 AM PDT by tobyhill (Fight Fire With Fire)
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To: tobyhill

I saw a commercial tonight advertising their latest and greatest I-Junk.

I was waiting for the federally required statement “Made in China for 65 cents an hour” disclaimer but never saw it...


13 posted on 04/30/2012 3:51:05 AM PDT by djf (Life's a play, we're actors not authors, and nobody even cared to give us the script!)
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To: REPANDPROUDOFIT

BINGO! Corporations always pay 0 taxes but Libs don’t comprehend how economics works. I can’t drive my car on an IPOD but of course for entertainment purposes I get it for a better price being they pay lower taxes.


14 posted on 04/30/2012 3:52:15 AM PDT by tobyhill (Fight Fire With Fire)
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To: tobyhill
No they didn't break any laws but this should take the issue away from Obama if Mittens had any smarts. Obama attacks the oil companies and Mittens takes on the leftist techies.
I wouldn't count on it. I expect mittens to follow the mccain formula: attack conservatives viciously while bowing reverentially in the direction of the Great Black One.
15 posted on 04/30/2012 3:52:15 AM PDT by samtheman ( http://www.youtube.com/watch?v=CZ-4gnNz0vc)
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To: samtheman

Mittens has the advantage if he takes it because to call out the leftist calls out the hypocrites.


16 posted on 04/30/2012 3:55:02 AM PDT by tobyhill (Fight Fire With Fire)
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To: tobyhill

Maybe its time for King Barry to set an example for Americans and American companies by voluntarily paying more in taxes than what is required by law. The IRS will gladly cash the check.

Until he is willing to do this, he and all the liberal elite who worship him can just go **** themselves.


17 posted on 04/30/2012 3:55:38 AM PDT by Fresh Wind ('People have got to know whether or not their president is a crook.' Richard M. Nixon)
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To: tobyhill

It’s not Apple’s fault. The corrupt, criminal US Congress only has to look into a mirror to see who are the real scumbags in this tax mess: THEM!


18 posted on 04/30/2012 4:04:47 AM PDT by carriage_hill (I'd vote for a "orange juice can", before 0bummer&HisRegimeFromHell, gets another 4yrs. Can-> later.)
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To: tobyhill

The New York Times Company (NYT) -NYSE
Profit Margin (ttm):-0.13%

Apple Inc. (AAPL) -NasdaqGS
Profit Margin (ttm): 27.13%
http://finance.yahoo.com/q/ks?s=NYT


19 posted on 04/30/2012 4:13:55 AM PDT by DUMBGRUNT (The best is the enemy of the good!)
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To: pepsionice

Some might see it as ethically wrong were they to gratuitously pay higher than required taxes—and earn less than they could for their shareholders.


20 posted on 04/30/2012 4:15:33 AM PDT by 9YearLurker
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To: tobyhill

A corporation acting in its own self interest—imagine that? Waiting for Obama to demonize them for taking advantage of the rules. Probably never going to happen because Apple is too COOL.


21 posted on 04/30/2012 4:29:54 AM PDT by rbg81
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To: The Working Man

I understand Microsoft does something like that. It’s software leasing office is in Nevada, I believe. And that is how most of their software is distributed, IIRC.


22 posted on 04/30/2012 5:11:43 AM PDT by cuban leaf (Were doomed! Details at eleven.)
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23 posted on 04/30/2012 5:56:51 AM PDT by deoetdoctrinae (Gun-free zones are playgrounds for felons)
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To: tobyhill

Guess someone at Apple has decided not to donate millions to Obama this election season. No other reason the Times would go after them unless the DNC is getting harmed.


24 posted on 04/30/2012 6:14:45 AM PDT by Brytani (Liberals - destroying America since 1776)
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To: Brytani
Guess someone at Apple has decided not to donate millions to Obama this election season.

Maybe Jobs's death will do some good there after all. Now to remove alGore from their board.

25 posted on 04/30/2012 6:39:50 AM PDT by JohnBovenmyer (Obama been Liberal. Hope Change!)
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