The Free Dictionary  
mailing list For webmasters
Welcome Guest Forum Search | Active Topics | Members

Making Apple pay taxes will destroy Europe, according to Tim Cook. Options
progpen
Posted: Wednesday, August 31, 2016 8:59:46 AM

Rank: Advanced Member

Joined: 10/2/2015
Posts: 1,487
Neurons: 191,278
Location: Princeton, Minnesota, United States
http://www.theregister.co.uk/2016/08/30/making_us_pay_tax_will_tear_europe_asunder_roars_apples_cook/

On Tuesday, the electronics giant was hit with a massive €13bn ($14.5bn) tax bill following a two-year investigation into the unusual arrangement Apple had reached with the Irish tax authorities that saw it pay an extraordinary 0.005 per cent tax rate in 2014.

The European Commission called it "illegal state aid," the Irish tax authorities claimed they had "collected the full amount of tax due," and Apple... well, Apple claimed that the same deal is available to every business based in Ireland, if only they ask.


And Tim Cook goes one step further.

Cook also strongly disputes the EC's claims that Apple has reached a special agreement with Ireland: "The opinion issued on August 30th alleges that Ireland gave Apple a special deal on our taxes. This claim has no basis in fact or in law. We never asked for, nor did we receive, any special deals."



Europe is seeing the same kinds of issues we do in the US regarding multinational corporations. If the EU is to survive into the next decade it will have to prevail here. If they fail to bring Apple in line, the EU will fall apart.

Here is the open letter from Tim Cook to its customers.
http://www.apple.com/ie/customer-letter/


Our lives begin to end the day we become silent about things that matter. ― Dr. Martin Luther King Jr.
Gary98
Posted: Wednesday, August 31, 2016 9:44:50 AM

Rank: Advanced Member

Joined: 7/23/2014
Posts: 1,609
Neurons: 2,387,279
Location: Philadelphia, Pennsylvania, United States
This is why many Americans are voting for Trump. Revolution may be next if Clinton comes in and does the same thing for multinationals.
progpen
Posted: Wednesday, August 31, 2016 9:50:09 AM

Rank: Advanced Member

Joined: 10/2/2015
Posts: 1,487
Neurons: 191,278
Location: Princeton, Minnesota, United States
Gary98
Posted: Wednesday, August 31, 2016 10:08:35 AM

Rank: Advanced Member

Joined: 7/23/2014
Posts: 1,609
Neurons: 2,387,279
Location: Philadelphia, Pennsylvania, United States
Surely Trump knows how to work the system. No one knows if he can deliver any of his promise. Still, many Americans are drawn to him. That is why next thing coming may be unrest, or revolution.
pedro
Posted: Wednesday, August 31, 2016 10:41:29 AM

Rank: Advanced Member

Joined: 5/21/2009
Posts: 12,932
Neurons: 58,635
If Apple employed a good accountant, they would have already set up a 'Provision for fraud being detected' account so this wouldn't have come as a surprise. However, it would be tempting to dip into a €13bn pot.

All good ideas arrive by chance- Max Ernst
Gary98
Posted: Wednesday, August 31, 2016 10:46:18 AM

Rank: Advanced Member

Joined: 7/23/2014
Posts: 1,609
Neurons: 2,387,279
Location: Philadelphia, Pennsylvania, United States
Is their accountant too good or not good enough?
Drag0nspeaker
Posted: Wednesday, August 31, 2016 10:56:48 AM

Rank: Advanced Member

Joined: 9/12/2011
Posts: 26,896
Neurons: 146,892
Location: Livingston, Scotland, United Kingdom
This is the same sort of thing Starbucks and many other internationals do.

Starbucks UK is a non-profit organisation and pays no taxes. How?

All the money you pay for your coffee and pastry goes to wages, overheads, bonuses for the executives and 'franchise costs' paid to Starbucks International or some such 'umbrella company'.

Subtract all these costs from the income, and you end up with zero taxable income. There is no 'value added' to tax.

This is why a 'Robin Hood' tax would work so well.

The theory is . . . cancel sales tax, income tax and so on.

Simply 0.5% tax on all bank transfers of £1,000,000 or more (someone would have to police companies which transfer £999,999 more than once a month, or whatever).
Just that one tax would run the whole UK government, welfare, roads, schools, etc easily.


Wyrd bið ful aræd - bull!
progpen
Posted: Wednesday, August 31, 2016 11:02:45 AM

Rank: Advanced Member

Joined: 10/2/2015
Posts: 1,487
Neurons: 191,278
Location: Princeton, Minnesota, United States
There are a few very good ideas like Drag0nspeaker's that would fix the current system. Getting those in power to even talk about them is the first step towards a solution.

Our lives begin to end the day we become silent about things that matter. ― Dr. Martin Luther King Jr.
towan52
Posted: Wednesday, August 31, 2016 11:16:55 AM

Rank: Advanced Member

Joined: 8/28/2012
Posts: 1,666
Neurons: 156,910
Location: Midland, Texas, United States
It's very simple; if Apple has to pay, negotiate a deal with the UK and move there. Apple will appeal, but the money will have to go to an escrow account. Also, for some reason that escapes me, Ireland cannot do as it pleases with the windfall. It could go toward paying off some of their National Debt (which is huge following 2008) but they could then use the money they would normally apply to the ND to build hospitals, schools and Guinness Breweries. Tax incentives to bring companies to countries, regions or cities seldom work out beneficially in the longer term. The number of jobs created seldom live up to promises and when the tax breaks/incentives expire, they move on somewhere else.

"Today I was a hero. I rescued some beer that was trapped in a bottle"
thar
Posted: Wednesday, August 31, 2016 11:59:49 AM

Rank: Advanced Member

Joined: 7/8/2010
Posts: 15,767
Neurons: 63,047
Ireland perverted the law on fair taxation to attract the companies, and in the medium term it will get some money out of it in terms of this tax bill. In the long term, companies will not want to exploit that loophole in future.

Apple can pay that tax bill out of its petty cash. It has enough in cash assets, let alone financial moves.

Ireland tried a con game and got caught. According to financial figures, its growth last year was 26%.
That is more than any boom ever, and it wasn't real - it counted companies like Apple's EU operation as being in Ireland, whereas all they had there was a letterhead, a broom cupboard and a tea lady.

The both tried to con the system, they both got caught. Giving a company a tax-free ride for turning up is a con. And it shows how the EU works - every country is in it for what it can get, and to ***** with the others. That is the reality, which some politicians refuse to admit.

9 of the 10 biggest global drug companies have operations in Ireland, to play the international tax system.
The US acted to stop multinationals operating in the US but avoiding taxes by pretending they were doing their hundred billion-dollar deals out of house in Dublin.



I don't see how this will 'tear anything asunder'. It will drag on - lawyers will get rich, accounting firms will get rich, some money will change hands, nobody will notice much difference. Apple might cancel the lease on the Dublin townhouse and a couple of dozen people in Dublin will need to look for a new job. Apple will re-calculate its potential future earnings based on the amount of taxes is always knew it should have been paying anyway. Nothing EU-rocking there that I can see!

Tovarish
Posted: Thursday, September 01, 2016 9:36:12 PM

Rank: Advanced Member

Joined: 9/2/2009
Posts: 11,062
Neurons: 39,580
Location: Booligal, New South Wales, Australia
It happens down here too, shifting money off shore to tax havens or countries offering less company tax.

The major players are the same and government changes have been made to ensure businesses pay tax at the Point of Sale.

Getting the tax back with large default charges is another thing, these companies have the best legal and accountancy departments and can tie

this up for years in the courts.
Users browsing this topic
Guest


Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Main Forum RSS : RSS
Forum Terms and Guidelines. Copyright © 2008-2017 Farlex, Inc. All rights reserved.