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Apple avoided paying billions in taxes


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#1 Cary Kollins

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Posted 21 May 2013 - 07:59 AM


This is just maddening. Developed in California. Made in China. $30 billion profit tax free.


 

Some of these subsidiaries had no employees and were largely run by top officials from the company’s headquarters in Cupertino, Calif., according to congressional investigators. But by officially locating them in places like Ireland, Apple was able to, in effect, make them stateless – exempt from taxes, record-keeping laws and the need for the subsidiaries to even file tax returns anywhere in the world.

In 2011, for example, one subsidiary paid Ireland just one-20th of 1 percent in taxes on $22 billion on pretax earnings from various operations; another did not file a corporate tax return anywhere and has paid almost nothing on $30 billion in profits since 2009.


Overall, Apple’s tax avoidance efforts shifted at least $74 billion beyond IRS reach between 2009 and 2012, the investigators said. Apple could still have to pay U.S. taxes on it if the company were to return the money to the United States.



Apple’s strategy underscores how riddled with loopholes the American corporate tax code has become, critics say. It also shows how difficult it will be for Washington to overhaul the tax system and shut these loopholes down.



Apple declined to comment, except to make available a text of the testimony Cook is expected to provide. Cook is expected to emphasize that Apple is most likely “the largest corporate income tax payer in the U.S., having paid nearly $6 billion in taxes to the U.S. Treasury” in the last fiscal year.

He is also expected to push for overhauling the U.S. corporate tax code, especially lowering rates on companies moving foreign overseas earnings back to the United States. (well isn't that conveeeeenient)

http://www.charlotte...g-billions.html



#2 pstall

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Posted 21 May 2013 - 08:05 AM

How many pension plans owned Apple stock?

#3 Zod

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Posted 21 May 2013 - 08:10 AM

I wonder if California is offering them huge tax breaks to keep them there.



#4 Panthro

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Posted 21 May 2013 - 08:12 AM

Those damn welfare queens.



#5 Panthro

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Posted 21 May 2013 - 08:14 AM

I wonder if California is offering them huge tax breaks to keep them there.

 

One would think. I do know that a lot of businesses have left for Oregon, Nevada, Idaho, and Arizona because of the high tax rates.

 

They call it the Californication of America.



#6 Panthro

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Posted 21 May 2013 - 08:15 AM

Or perhaps that is where their employee pool is based.

 

 



#7 stirs

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Posted 21 May 2013 - 08:35 AM

Didn't Facebook do something similar?

#8 Kurb

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Posted 21 May 2013 - 08:36 AM

They are 30 billion times worse than the "crackhead single mom with 5 kids drawing checks".



#9 g5jamz

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Posted 21 May 2013 - 08:39 AM

Just taking advantage of the system.

 

This has been going on a while...here...watch a video (60 minutes) on this very thing. 

 

http://www.cbsnews.c...ch/?id=7360936n

 

Some other place that I can't recall (city is 3 letters) too. Remember now...Zug, Switzerland. 



#10 g5jamz

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Posted 21 May 2013 - 08:43 AM

As far as they are 5 times worse than a crack head mom...

 

these companies do nothing more than shift some of their monies to other areas to avoid taxation.  Do you enjoy your tax deduction for contributing to your IRA?  Do you do things to reduce your tax burden?  Now...weighed against everything it seems really extreme, but as long as they are following the law...what are you complaining about.  Do you want US corporations to be taxed MORE?  How do you think that will change things?  More companies will just move to Ireland or Zug, Switzerland. 



#11 Cary Kollins

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Posted 21 May 2013 - 09:00 AM

As far as they are 5 times worse than a crack head mom...

 

these companies do nothing more than shift some of their monies to other areas to avoid taxation.  Do you enjoy your tax deduction for contributing to your IRA?  Do you do things to reduce your tax burden?  Now...weighed against everything it seems really extreme, but as long as they are following the law...what are you complaining about.  Do you want US corporations to be taxed MORE?  How do you think that will change things?  More companies will just move to Ireland or Zug, Switzerland. 

 

 

Sure it may be legal. That's why it's a problem.  The loopholes.

 

It just stinks to high heaven. If the companies want to move to Switzerland, fugin let'em move to Switzerland.

 

They want to be here in America, protected by our military, using our highways, schools, way of life, but not pay taxes on billions of profit.  It's absurd. 



#12 g5jamz

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Posted 21 May 2013 - 09:03 AM

Sure it may be legal. That's why it's a problem.  The loopholes.

 

It just stinks to high heaven. If the companies want to move to Switzerland, fugin let'em move to Switzerland.

 

They want to be here in America, protected by our military, using our highways, schools, way of life, but not pay taxes on billions of profit.  It's absurd. 

 

Let's say you close the loophole and "punish" them.  What stops them from just picking up and moving completely to Zug. 



#13 Kurb

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Posted 21 May 2013 - 09:05 AM

As far as they are 5 times worse than a crack head mom...

 

these companies do nothing more than shift some of their monies to other areas to avoid taxation.  Do you enjoy your tax deduction for contributing to your IRA?  Do you do things to reduce your tax burden?  Now...weighed against everything it seems really extreme, but as long as they are following the law...what are you complaining about.  Do you want US corporations to be taxed MORE?  How do you think that will change things?  More companies will just move to Ireland or Zug, Switzerland. 

 

I'll be quick, for I have appointments today and I know you have to get to the radio soon for Rush. 

 

Lets take the "crackhead" part out for this discussion. I was using it as it is a popular label, but for what I am about to say it's better to use this "Low Income, 4 babies, welfare queen, with cell phones, etc" meme.

 

You can't cry moral outrage at some random person, who is poo ass poor, taking advantage of free government hand outs (gaming the systems) costing the Tax Payers, i dunno 50K a year? in lost tax dollars

 

THEN Turn around and say what you said above.

 

Who has hurt the American Public more? Random welfare queen whom we don't know all her circumstances. 

 

ooorrrrrr

 

Mega Billion Dollar coorporation that not only ships its factory jobs overseas so children can make our iPads, but then hides the money in 

 

Some of these subsidiaries had no employees and were largely run by top officials from the company’s headquarters in Cupertino, Calif., according to congressional investigators. But by officially locating them in places like Ireland, Apple was able to, in effect, make them stateless – exempt from taxes, record-keeping laws and the need for the subsidiaries to even file tax returns anywhere in the world.

 

...

 

Sorry, I'll gladly take my swings at company robbing my country of taxation on almost 100 billion dollars over 3-4 years before I take my swings at someone living below the poverty level.

 

 

No one want's anyone to pay more taxes.

It would be REALLY fuging nice tho if everyone paid what they are supposed to pay.



#14 Cary Kollins

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Posted 21 May 2013 - 09:09 AM

Let's say you close the loophole and "punish" them.  What stops them from just picking up and moving completely to Zug. 

 

 

"Punishing" companies by asking them to pay tax on BILLIONS in profit?

 

You ask "What stops them from just picking up and moving completely to Zug?" 

 

Like I said, if they want to pack up and leave America because they can't afford to pay taxes on $30 billion in profit.  LET THEM MOVE. 



#15 Darth Biscuit

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Posted 21 May 2013 - 09:24 AM

I'll be quick, for I have appointments today and I know you have to get to the radio soon for Rush. 
 
Lets take the "crackhead" part out for this discussion. I was using it as it is a popular label, but for what I am about to say it's better to use this "Low Income, 4 babies, welfare queen, with cell phones, etc" meme.
 
You can't cry moral outrage at some random person, who is poo ass poor, taking advantage of free government hand outs (gaming the systems) costing the Tax Payers, i dunno 50K a year? in lost tax dollars
 
THEN Turn around and say what you said above.
 
Who has hurt the American Public more? Random welfare queen whom we don't know all her circumstances. 
 
ooorrrrrr
 
Mega Billion Dollar coorporation that not only ships its factory jobs overseas so children can make our iPads, but then hides the money in 
...
 
Sorry, I'll gladly take my swings at company robbing my country of taxation on almost 100 billion dollars over 3-4 years before I take my swings at someone living below the poverty level.
 
 
No one want's anyone to pay more taxes.
It would be REALLY fuging nice tho if everyone paid what they are supposed to pay.



Completely agree on your overall point here Kurb... only difference I see is that the company is using "legal" means to move profits overseas to avoid taxes and (in your example of "gaming the system") the person is essentially committing fraud. I think both acts need to be stopped... both by changing the laws, particularly the large companies skirting the paying of taxes with armies of lawyers and accountants.

Close the loopholes. Fix the tax and accounting systems that allow companies to do these practices. Lower the tax rate if necessary to compete with these overseas countries that companies move to.

Also, when comparing these things obviously one large company isn't the same as one individual "gaming the system"... (and in reality it's probably not even a comparison of a LOT of individuals "gaming the system") but steps should be taken to reduce the defrauding of government programs, both by individuals and by companies.




Now to reality... these large companies own the lawmakers. Nothing will change.

Apple can take a chunk of that $30B they saved and purchase enough votes to never have to worry about this.


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