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How Apple Minimizes its Corporate Tax Burden

Mal said:
Are you serious? You really think that Apple utilizing the tax laws in order to reduce the amount of money they throw away (i.e. send to the government) is morally equivalent to you throwing a brick through the glass of their front window?

Go ahead, try it. I'll be laughing my ass off as you're carted off to jail, happy that you've stuck it to the man. :rolleyes:

jW
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It may not be a legal equivalent bu I think I would be on a high moral ground. Me throwing a brick and causing $200 damage to Apple is not the same as hiding $8 billion in taxes and causing the roads and emergency services to degrade and medicare/medicade go broke causing real pain and premature deaths. I think I am OK with my position, I am surprised you are OK with Apple stealing money from US people.

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FloatingBones said:
Why stop there? Why not boycott every company that strives to minimize its taxes?
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I am glad you are with me on this one. Exactly, start boycotting the most greedy ones and they will all be happy to pay whatever taxes we want (unless they want to go bankrupt).
 
bedifferent said:
I think people agree with you, they just hate that this is happening. Human beings are flawed, we all are, and as such we'll do what benefits us the most. Does it make it right ethically? No, but it would be nice if businesses and humanity did the right thing. Yes, I know, I'm dreaming. :)
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I wish that too but it's not realistic and i understand why it's not. Business really should be separate from personal life. I have no problem with apple going about things legally even if some people think they're not ethical. It simply doesn't matter.

If Apple starts doing illegal things then yeah they should be punished, but they're not and like every other (successful) business in existence, well do everything they can possibly do to protect their bottom line. If that's done legally, there's no place for discussion of ethics.
 
This post and the comments show exactly why Apple fanatics are hypocritical retards. If you'd replace "Apple" by any other company, you'd all be up up arms with torches and pitchforks to condemn this practice. While what Apple does is perfectly legal, it's hardly socially responsible. You'll see tens of thousands of liberal scuzzbags up in arms again big business (think: occupy) and leaving Apple out of the equation while posting from their iProduct.

It's sickening, double standards in the cult of Apple.
 
So, um, how about those rumors for a Mac refresh coming? Any thoughts on Mountain Lion? ... Bueller? ... Bueller? ...
 
charlieegan3 said:
rich get richer...
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This has nothing to do with "the rich get richer." Rich, middle-class and even some poor people buy Apple products. Corporate taxes are part of the cost basis of the products. I hate the expression "wealthy corporations"-- corporations are either successful or unsuccessful, not rich or poor. Personally I believe the government should crack down on wealthy individuals paying their share of taxes*, but corporate taxes are another matter--- corporate tax rates (before loopholes) are too high, and as a result distort business investment.

* To pre-empt the right-wing mantra, "rich people pay most of the taxes"-- this is true, but rich people get most of the benefits as well. The government provides infrastructure they exploit to create their wealth, and security to protect their wealth. It's only fair a portion of that wealth gets siphoned off to pay for these benefits.
 
I know it seems bad but if you can do it why not? At least apple can target where their money goes vs giving it up to politicians to fund their prostitutes and fast cars.
 
flat tax. enough said. no "loopholes", no "evasion". You simply pay for what you consume. Simple enough. If you buy million dollar homes, and yachts, you pay for it. If you only buy food and live a simple life, that's all you pay for. How hard is it for people to realize this?
 
Xeperu said:
This post and the comments show exactly why Apple fanatics are hypocritical retards. If you'd replace "Apple" by any other company, you'd all be up up arms with torches and pitchforks to condemn this practice. While what Apple does is perfectly legal, it's hardly socially responsible. You'll see tens of thousands of liberal scuzzbags up in arms again big business (think: occupy) and leaving Apple out of the equation while posting from their iProduct.

It's sickening, double standards in the cult of Apple.
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Every company does do this...
 
lilo777 said:
It may not be a legal equivalent bu I think I would be on a high moral ground. Me throwing a brick and causing $200 damage to Apple is not the same as hiding $8 billion in taxes and causing the roads and emergency services to degrade and medicare/medicade go broke causing real pain and premature deaths. I think I am OK with my position, I am surprised you are OK with Apple stealing money from US people.
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You don't have any moral grounds to destroy the property of others. Apple paid 3.3 billion in various taxes last year. You paid somewhere around a couple thousand at most probably. Who's got the bulk of the blame here? Apple's tax management is not costing lives or causing roads or emergency services to degrade either. You're a leech on society, thinking that those who produce should do so only to serve your selfish needs. Provide for yourself, don't scream about those who aren't giving you the handouts you "deserve".

jW
 
imybigday said:
Read "Rich Dad, Poor Dad" , you will then understand two things:

1. Apple is just doing what they should be doing
2. People who are negative about this post are the poor / middle class who are too lazy to change themselves, but rather stay in a 9-5 day job and blaming the rich.
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Love it
 
It's a tricky one really. I agree that Apple has a fiduciary duty to its shareholders to minimise the amount of tax that it has to pay. The fault is in the system and international tax liability is a complex business. No one likes to pay more tax than is necessary.

It's a game of cat and mouse in the tax world. Clever tax consultants devise tax reduction schemes to help the people that can afford to pay for them. Then the government brings in new legislation to close the schemes down. So the consultants come up with new schemes and the circle is repeated.

The slight unfairness of the system is that if you are rich you can afford to pay for expensive tax consultants. If you are middle income then you have little choice but pay the going rate.

The worry for Apple, is nobody likes tax dodgers, and while Apple has done nothing wrong, given the enormous profits that it makes, some may feel that Apple is taking advantage of the system. This could damage the 'cool company' image that is so important to the brand, and is the main reason that Apple very quickly responded to the allegations.
 
There is nothing moral about taxes. Sure, most of us would give some of our income for certain services like police, fire protection, etc. But that's not what we have now. What we have now is theft of our income to buy political power and votes from the low-income, free-loading, and 'I don't want to have to work' crowd.

That's the problem with taxes and why government cannot be trusted with any more money under any conditions. They have proven they can't handle it.
 
Starve the beast, Apple!

All it means is less money for special interests, do you think the marginal dollar goes to feed a poor person or something?
 
Why in the world you want to entrust more money to our completely incompetent government? I'd rather have apple be controlling my taxes, heck, any large corporation I'd rather have running the economical system rather than our government. Check out the video to explain our little national income problem, and no it's not because of big business, it's because of big government. Rick Santelli breaking things down for those who have a hard time w/ big numbers.

http://www.youtube.com/watch?v=KLjo6Sw7gk8
 
Xeperu said:
This post and the comments show exactly why Apple fanatics are hypocritical retards. If you'd replace "Apple" by any other company, you'd all be up up arms with torches and pitchforks to condemn this practice. While what Apple does is perfectly legal, it's hardly socially responsible. You'll see tens of thousands of liberal scuzzbags up in arms again big business (think: occupy) and leaving Apple out of the equation while posting from their iProduct.

It's sickening, double standards in the cult of Apple.
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Unless you can say that you don't take advantage of any means to reduce your taxes, don't call anyone hypocritical.
 
People need some education

cosmichobo said:
Couldn't agree more.

Taxes are created and collected for good reason, and companies/people who dodge them are cheating that system. This puts pressure on those who do pay taxes, and/or causes governments to have less funds to achieve their goals.

Bad Apple, bad.
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I love this... 'Taxes are created and collected for good reason'... Really? I beg to differ. Governments around the world uniformly do a 'poor' job of using the taxpayers $$ wisely. And I use the word 'poor' very liberally.
AND... 'Companies/people who dodge them are cheating the system'... What part of 'Apple complies with all laws' don't you understand? They aren't doing anything illegal. They are following all rules. Do 'you' pay more than what you have to in taxes?
AND... I love your last statement... 'and/or causes governments to have less funds to achieve their goals'... Wow, I don't even know where to begin with that statement...
 
notjustjay said:
Why?

If store A sells you a product for $20 and store B sells you the same product for $5, you would buy it from store B, right? You don't feel bad about taking business away from store A, you don't feel like you're doing wrong, you just evaluate the options and take the cheapest route. Perhaps to get the cheaper price from store B you need to set up a membership account or jump through a few hoops, but you'd do it if it saved you enough money.
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But in the case of taxes, only those that can afford accountants are able to use these loopholes (or, in the terms of your analogy, able to access the cheaper store). It wouldn't surprise me if the average family in many developed countries pay more tax than many 1%ers.
 
kagharaht said:
Some of these comments are either posted by ignorant people or just plain iHaters. Do your research and perhaps your eyes will open at how this is legal and huge corporation are doing the same thing. NYT needs the attention and what better company to use than Apple for their hit whore piece.

http://www.nytimes.com/2012/04/29/business/apples-response-on-its-tax-practices.html
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You are the ignorant one. nobody is saying it's illegal. People say it's immoral. And no one should be surprised if people start hating Apple for their behavior. Why should not they?
 
Not really...

Lennholm said:
Perfectly legal, but this is the kind of behaviour that should get alot of attention in order to bring badwill to the companies doing it.
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Not in any reality I'm a member of. If the U.S. gubment got ahold of it that would be 9 billion more dollars for them to waste. That would be 9 billion less dollars to go to share holders and R&D. No, I say good on them and am HAPPY to pay a company that finds ways to protect itself from thievery. They pay a decent 10% tax. That should be what everybody pays. I don't find fault with them for figuring out how to do it.
 
lilo777 said:
You are the ignorant one. nobody is saying it's illegal. People say it's immoral. And no one should be surprised if people start hating Apple for their behavior. Why should not they?
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Because every other major company is doing it? I hate people who say apple this (taxes) apple that (fox con). YOU people need to realize that it should be read said this way... "every major company this (taxes) every major (electronics) company that (fox con). Apple simply represents what every other major technology company is currently doing right along with apple.
 
I understand that they single out the most profitable corporation in the US. The one who has built an empire on good vibes, and advertising with people who look like they care about taxes and good vibes ;) What Apple is doing might not be illegal, but clearly it is unethical. In the end California and the US suffer the consequences of having less revenue, perhaps in intangible ways, worse roads, worse schools, worse healthcare. In the end, these corporations (perhaps as some point with the acquiescence of Congress) are cheating this country out of taxes that should have been paid, shifting the burden to the people.
 
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