1. Akshay Masand's Avatar


    The New York Times wrote a piece on the different methods Apple uses to sidestep “billions in corporate taxes” earlier this year. Similar to many other articles on the topic, it portrayed Apple in a not-so-favorable light. Despite all the workarounds, Apple says it still pays a significant amount in income taxes. According to a recent statement, it paid over $6 billion in U.S. taxes during its fiscal 2012, accounting for $1 out of every $40 collected from corporations.

    Congressional investigators are in the process of finishing their probe into the accounting practices of Apple and other tech companies that involves allocating revenue and intellectual property offshore to avoid paying often-higher U.S. and federal income taxes. According to The Times report:

    In its statement, Apple said it paid “an enormous amount of taxes” to local, state and federal governments. “In fiscal 2012 we paid $6 billion in federal corporate income taxes, which is 1 out of every 40 dollars in corporate income taxes collected by the U.S. government,” it said.
    While $6 billion is a large number, it’s only a fraction of the taxes Apple would be paying if it wasn’t so good at avoiding them. It’s believed that the company has found legal ways to allocate about 70% of its profits overseas, where taxes are much lower overall. It’s found ways to avoid paying billions of dollars in taxes here in the U.S. as well. More recently, the company has begun re-routing its revenue through offices in Reno, because California taxes corporations roughly 8% and Nevada charges 0%.

    It should be pointed out that Apple isn’t the only company doing this either. Apple is only in the lime light due to the large success it has had, making it a much bigger target. Although there isn’t anything technically illegal about the whole procedure, one can’t help feel like the move is immoral for all those not directly involved with the company.

    Source: The New York Times

    Twitter: @AkshayMasand
    2013-01-05 07:26 PM
  2. kyteflyer's Avatar
    Apple pays no tax in Australia which is just wrong, and I believe none in the UK either. Nor do many other big companies.
    2013-01-05 09:15 PM
  3. spazturtle's Avatar
    Apple pays no tax in Australia which is just wrong, and I believe none in the UK either. Nor do many other big companies.
    You silly person, taxes are for people who can't afford lawyers, everyone knows that.
    2013-01-05 11:48 PM
  4. Mrteacup's Avatar
    Apple pays no tax in Australia which is just wrong, and I believe none in the UK either. Nor do many other big companies.
    60%+ people in the US don't pay taxes and get away with it.
    2013-01-06 05:05 AM
  5. bigboyz's Avatar
    Well they pay them in the good ol US of A. Not really concerned with those countries as i don't live there. All big companies pay lawyers to figure out ways to save $$. Its the only way to maximize profits and reduce spending. Whats good for the goose...:]
    2013-01-06 08:11 PM
  6. Ambi_Valence's Avatar
    Well they pay them in the good ol US of A. Not really concerned with those countries as i don't live there. All big companies pay lawyers to figure out ways to save $$. Its the only way to maximize profits and reduce spending. Whats good for the goose...:]
    That's a terrible attitude. What I think you mean though is, 'It doesn't seem to affect me so I don't care'.
    There are lots of things that happen outside of the US that I bet your countrymen, (and mine I might add), have their big noses stuck into.

    We all have to take some responsibility though. I like the prices of my goods to be as low as possible and to this end I turn a blind eye to certain corporate nefarious goings on to make it stay that way.
    2013-01-07 07:54 PM
  7. spazturtle's Avatar
    Well they pay them in the good ol US of A. Not really concerned with those countries as i don't live there. All big companies pay lawyers to figure out ways to save $$. Its the only way to maximize profits and reduce spending. Whats good for the goose...:]
    Well school shootings don't happen in my country so I don't care about the ones in the USA, in fact I like them, they made good news and keep population under control.
    2013-01-07 07:59 PM
  8. Ambi_Valence's Avatar
    Well school shootings don't happen in my country so I don't care about the ones in the USA, in fact I like them, they made good news and keep population under control.
    I see what you did just there. Let me get on my fireproof suit whilst I watch the reaction.
    2013-01-07 08:01 PM
  9. rockyseay's Avatar
    60%+ people in the US don't pay taxes and get away with it.
    The difference is most of the people in the U.S don't make enough money to pay taxes if they wanted to.
    2013-01-07 09:31 PM
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