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[New York Times] How Apple Sidesteps Billions in Taxes

post #1 of 199
Thread Starter 
apple-logo-broken.png
Quote:
Originally Posted by The New York Times 
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.

Article: http://www.nytimes.com/2012/04/29/business/apples-tax-strategy-aims-at-low-tax-states-and-nations.html?_r=1


Edit: Please keep politics out of this thread.


Got a problem with that rule? Then don't post in here. Simple as that.
Quote:
Originally Posted by dontpwnmebro View Post

economics is not politics.

Edited by MediaRocker - 5/2/12 at 1:42am
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post #2 of 199
Did they seriously put the Netherlands in that list? Because that is absolute crockery, no way they've set up shop here for the tax advantage, because there isn't any whatsoever.
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post #3 of 199
Another reason to hate Apple.
post #4 of 199
Not surprising at all, like so many other companies, Apple takes advantage of the broken tax codes.
     
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post #5 of 199
Thread Starter 
Quote:
Originally Posted by Munkypoo7 View Post

Not surprising at all, like so many other companies, Apple takes advantage of the broken tax codes.

Yep, I'm with you there. GE earned $14.2 billion and since something like 9 billion was from overseas they paid $0 taxes on those earnings AND received a $3.2 BILLION dollar Tax benefit.
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post #6 of 199
Once again, corporations performing frowned upon actions yet nothing "illegal".

Whatever happened to death and taxes?
post #7 of 199
This isn't apple specific, most large corporation do this.
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post #8 of 199
Thread Starter 
Quote:
Originally Posted by .:hybrid:. View Post

This isn't apple specific, most large corporation do this.

The article is Apple specific, however I'm not intending to say that Apple is the only company doing this. wink.gif
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post #9 of 199
Quote:
Originally Posted by .:hybrid:. View Post

This isn't apple specific, most large corporation do this.

Yep.

Although, I do remember a couple of years ago Apple had the nerve to ask the US Gov't for a "tax holiday" to bring their cash from foreign banks into the US tax-free, supposedly to "stimulate the economy and create jobs." I raged hard. If our tax code didn't kiss the behinds of the corporations and allow them to skirt the taxes that they owe, our deficit wouldn't be so high.

If I were in charge (and these people better be glad I'm not) they'd be paying 60% and dealing with it.
post #10 of 199
Quote:
Originally Posted by MasterFire View Post

Did they seriously put the Netherlands in that list? Because that is absolute crockery, no way they've set up shop here for the tax advantage, because there isn't any whatsoever.

Read the article, it explains the 'Double Irish With a Dutch Sandwich' technique for lowering corporate taxes.
 
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