Tim Cook Confirms Apple Will Make Global Fund Donations From Sales of Red iPhone 7 in China

[Bacillus]

Donate millions to medical research and people still complain. No good deed goes unpunished.

What an ignorance.
I have more respect for a poor grandmother donating a few $ that she can hardly miss than for Apple that (legally) grabs billions from users, avoided taxes and underpaid assembly workers. Year over year. Where it piles up so much, that it doesn't know how to spend anymore.
And then gives away a promille or 0.5
With their made-up feelgood formula, that coincides with milking out the existing catalogue with minimal effort.

 

[JeffyTheQuik]

Pay your taxes, Apple.

This donation initiative is just another tax exemption. Not impressed.

I think you're going after the wrong people. The Legislature allows people and companies to take exemptions for things they deem as acceptable.

If Apple didn't take the deductions (in general... i.e. they didn't take deductions for R&D, salaries, COGS), I, as a stockholder, would participate in a class action lawsuit against them for improperly using assets.

 

[aaronhead14]

Pay your taxes, Apple.

This donation initiative is just another tax exemption. Not impressed.

While I do think Apple needs to improve in many aspects (professional hardware such as the Mac Pro), this is something we shouldn't be complaining about. Tax exemptions are a good thing, not a bad thing.

 

[milo]

What an ignorance.
I have more respect for a poor grandmother donating a few $ that she can hardly miss than for Apple that (legally) grabs billions from users, avoided taxes and underpaid assembly workers. Year over year. Where it piles up so much, that it doesn't know how to spend anymore.
And then gives away a promille or 0.5
With their made-up feelgood formula, that coincides with milking out the existing catalogue with minimal effort.

Thanks for proving my point.

 

[slimothy]

Ummm he said "every iPhone 7 and 7 Plus sale"... not just product RED? WTF?

 

[dwaltwhit]

I stand corrected on my post in the other thread.

Good on Apple, bad on me.

This is the internet! You can't admit mistakes!!!

 

[Aldaris]

Ummm he said "every iPhone 7 and 7 Plus sale"... not just product RED? WTF?

Are you seriously upset a small (minuscule) portion of the cost of your iPhone went to (Product)Red efforts?

 

[Le Big Mac]

The red phone should be popular in China too . . .

 

[sir1963nz]

I would guess that Sales from New Zealand will be exempt too.

Apparently Apple makes zero profit in New Zealand which is how they can pay $0 in taxes.

I can't see apple selling at a loss, so I presume they will just exempt sales from New Zealand.

 

[Sam_S]

I hope he does! And isn't lying about this, like he lied about the pipeline of "Pro" products.

 

[farewelwilliams]

I can't think of any other reason why they'd not use the branding in China and use it everywhere else. What would be the point?

In China, the color red symbolizes good luck. Associating good luck with HIV/AIDS (regardless if it's for a good cause) may not fly well with customers.

 

[phillipduran]

Pay your taxes, Apple.

This donation initiative is just another tax exemption. Not impressed.

A Tax exemption is LAW/rule so that people know what is taxed, what isn't and what reduces taxes.

You DO know that you are asking for someone to pay tax for something that isn't taxed or has reduced taxes.

How much do you want them to pay in taxes for something that has a break on taxes? Maybe we should refer to the law to see how much they owe regarding this exemption vs how much they paid. Cook didn't write the tax code that says if you donate to charity, you get reduced taxes. The US government did. That IS how it works.

What's next? Innocent people should serve their fair time in jail?

 

[Carnegie]

I would guess that Sales from New Zealand will be exempt too.

Apparently Apple makes zero profit in New Zealand which is how they can pay $0 in taxes.

I can't see apple selling at a loss, so I presume they will just exempt sales from New Zealand.

Apple doesn't pay income taxes in New Zealand because the Double Tax Agreement between New Zealand and Australia entitles Australia to collect those taxes because that is where Apple has a permanent establishment (as such term is defined for purposes of that agreement). If the situation were reversed, Apple would have to pay those income taxes (as well as income taxes on profits attributable to Australia) to New Zealand.

What is Apple supposed to do, ignore New Zealand and Australia's laws so that it can pay income taxes in New Zealand? If it did that it could save a couple of percent, but I doubt it would get away with it. And, of course, then some would criticize it for trying to save those couple of percent.

 

[Keane16]

Pay your taxes, Apple.

This donation initiative is just another tax exemption. Not impressed.

What taxes are they evading? I thought they (like many large corporations) were paying the bare minimum required by law (just as I do).

And what exemptions are they receiving for raising money for via Product Red.

Genuinely interested. Thanks in advance.

 

[JeffyTheQuik]

This is the internet! You can't admit mistakes!!!

You're WRONG!!! A pox on you and your grandchildren, their best friends, along with their barbers!



I forgot about the unhinged personal attacks for someone having a different opinion.

Whew! I feel like I have my Internet mojo back.

 

[santaliqueur]

Pay your taxes, Apple.

This donation initiative is just another tax exemption. Not impressed.

They pay all the taxes they owe, just like you and I. Ever take a deduction on your taxes? Apple does the same thing.

You hate the tax laws, but you direct your anger at Apple for some reason. Do you hold every other company in the world to the same standards?

 

[bladerunner2000]

They pay all the taxes they owe, just like you and I. Ever take a deduction on your taxes? Apple does the same thing.

You hate the tax laws, but you direct your anger at Apple for some reason. Do you hold every other company in the world to the same standards?

Yes, I do, LOL. Why would I not?!

 

[coolfactor]

$130 million doesn't sound like a lot, given how many years they've been selling (PRODUCT) RED products. But at the same time, it's better than nothing.

 

[applefan69]

Sounds (from his response) like every iPhone sold whether (RED) or not has a donation attached.

This caught my attention too. Might be a wording thing, probably is else they would of been advertising this all along.

In this thought if he is saying the funds donated come from every single iPhone 7 sale, he is essentially saying the product red thing is a gimmick.

Are you seriously upset a small (minuscule) portion of the cost of your iPhone went to (Product)Red efforts?

See above

 

[Aldaris]

This caught my attention too. Might be a wording thing, probably is else they would of been advertising this all along.

In this thought if he is saying the funds donated come from every single iPhone 7 sale, he is essentially saying the product red thing is a gimmick.



See above

It wouldn't be insane to market specifically labeled gear for awareness and such as well as donate a percentage of each phone sold. It is something Apple has really believed in for some time, we shouldn't be surprised. It's not like some conspiracy where Apple is subsidizing (Product)Red. We shouldn't be any more surprised than Apple donated to this cause or that cause.

 

[fiveainone]

This thing's going to fly off the shelves in China.

 

[sir1963nz]

Apple doesn't pay income taxes in New Zealand because the Double Tax Agreement between New Zealand and Australia entitles Australia to collect those taxes because that is where Apple has a permanent establishment (as such term is defined for purposes of that agreement). If the situation were reversed, Apple would have to pay those income taxes (as well as income taxes on profits attributable to Australia) to New Zealand.

What is Apple supposed to do, ignore New Zealand and Australia's laws so that it can pay income taxes in New Zealand? If it did that it could save a couple of percent, but I doubt it would get away with it. And, of course, then some would criticize it for trying to save those couple of percent.

OR, pay the taxes in the country where you have made the money.

I know, what a shocking idea, who would have thought that that was possible.

 

[szw-mapple fan]

I can't think of any other reason why they'd not use the branding in China and use it everywhere else. What would be the point?

If they are giving the donation from China sales, then why did Apple choose to not market it as "product red" in China? He could have acknowledged that part of the question.

I already posted this in the discussions in the other China/Product Red Article, but starting from this year it is against the law in China for a foreign NGO to promote their cause via a profit-earning organization.

 

[MH01]

You don't easily blame the Chinese. And he answered the exact question he was asked.

No he did not . From his reponce is a donation made from every single product red iPhone 7 or iPhone 7 plus or every single iPhone 7 sold. Cause if the second, why not iPhone 6, iPhone SE... he gave a politicians answer, one you want to hear without substance / facts, but make you feel warm and fuzzy inside

 

[Carnegie]

OR, pay the taxes in the country where you have made the money.

I know, what a shocking idea, who would have thought that that was possible.

In this context, Australian law prevents Apple from doing that. It's not up to Apple where those income taxes are due. It's up to NZ and Australia, and they've decided that those taxes are due to Australia. So... shame on Apple for not ignoring the laws of the nations in which it operates, I suppose.

More generally, international corporate tax law doesn't effectively require income taxes to be paid based on where sales are made. It effectively requires that they be paid based on where value is created. That's a policy choice that societies, through governments, have made. We might not think that makes sense or prefer that it worked the other way (indeed, in some cases Apple would benefit if tax law worked the other way), but that is how it generally works.