Monday, June 14, 2021

Apple fried over taxes

All eyes were on Apple CEO Tim Cook on Tuesday, but not because he was rolling out a new product.

Instead he was in Washington before Congress doing what the heads of billion dollar corporations usually do, defending their ability to pay as little tax as possible.

Apple, apparently, is able to do what you and I can’t – shift two-thirds of its profits offshore, where U.S. corporate taxes don’t apply.

As many observers point out, what Apple does is perfectly legal and falls under tax avoidance, as opposed to tax evasion.

For some good background, Tim Worstall in Forbes sums it up well: Apple makes a lot of money outside the U.S. and doesn’t bring it into the country, where it could be taxed. It does pay full corporate taxes on the money it makes within the U.S.

 

Predictably, commentators spilled no end of digital ink over the hearing.

Richard Levick, who heads a PR firm representing companies in crisis, wrote in Forbes that it’s surprising consumer ire has been somewhat limited.  Robert Preston, business editor of BBC News opined that for Apple to be seen as a huge accumulator of cash may not add lustre to its image.Meanwhile many U.S. senators express outrage.

The bottom line, so to speak, is that the outrage is the number of loopholes corporations get in countries around the world.
 

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Jim Love, Chief Content Officer, IT World Canada
Howard Solomon
Howard Solomon
Currently a freelance writer, I'm the former editor of ITWorldCanada.com and Computing Canada. An IT journalist since 1997, I've written for several of ITWC's sister publications including ITBusiness.ca and Computer Dealer News. Before that I was a staff reporter at the Calgary Herald and the Brampton (Ont.) Daily Times. I can be reached at hsolomon [@] soloreporter.com

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