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Apple avoided paying billions in taxes

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Posted

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.charlotteobserver.com/2013/05/20/4053526/probe-apple-avoided-paying-billions.html

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Posted

How many pension plans owned Apple stock?

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Posted

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

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Posted

Those damn welfare queens.

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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.

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Posted

Or perhaps that is where their employee pool is based.

 

 

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Posted

Didn't Facebook do something similar?

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Posted

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

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Posted

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.com/video/watch/?id=7360936n

 

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

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Posted

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. 

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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. 

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Posted

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. 

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