Apple's Tim Cook Staunchly Defends Corporate Tax Payments - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Comments
Apple's Tim Cook Staunchly Defends Corporate Tax Payments
Newest First  |  Oldest First  |  Threaded View
Ariella
50%
50%
Ariella,
User Rank: Author
12/30/2015 | 6:15:02 PM
Re: I wouldn't pay 40%. Would you?
@Ashis As someone who has been through working in NYC while we lived in NJ and working in NJ while we lived in NY, I can tell you that we did not choose that for tax benefits. In fact, it's a pain in the neck because I have to file two different tax returns and calculate how much credit we get for the taxes paid into one state for the other. Whether you live and work in NY or just work in the state, it demands its cut, which can be more than NJ's. 

 

Italy's tax authories ruled against Apple, which will have to pay in the neighborhood of $350 million in taxes. See http://www.nytimes.com/2015/12/31/technology/apple-settles-tax-dispute-with-italian-authorities.html:

The investigation, which dates to 2013, examined whether Apple had moved roughly $1.1 billion in revenue from its Italian operations through an Irish subsidiary to lower the taxes that the company was obliged to pay in Italy.

The country's investigation into Apple's activities is the first time that an individual European country has focused on the company's complicated corporate tax structure, though policy makers in countries like France have previously looked at other tech companies' tax arrangements, including those of Google.

Ariella
50%
50%
Ariella,
User Rank: Author
12/26/2015 | 6:18:47 PM
Re: I wouldn't pay 40%. Would you?
@Joe I know someone who has been a Long Island resident all his life but whose family would winter in Florida. On that basis he kept a Florida driver's license for years, decades even.  His wife claimed he did it to save on car insurance, but that really should go according to the car registration rather than the license. His car had NY plates. Anyway, he only switched to a NY license after having to get off of jury duty in Florida. 
Ariella
50%
50%
Ariella,
User Rank: Author
12/26/2015 | 6:18:43 PM
Re: I wouldn't pay 40%. Would you?
@Joe I know someone who has been a Long Island resident all his life but whose family would winter in Florida. On that basis he kept a Florida driver's license for years, decades even.  His wife claimed he did it to save on car insurance, but that really should go according to the car registration rather than the license. His car had NY plates. Anyway, he only switched to a NY license after having to get off of jury duty in Florida. 
Ariella
50%
50%
Ariella,
User Rank: Author
12/26/2015 | 6:15:32 PM
Re: I wouldn't pay 40%. Would you?
@Broadway You think all Apple employees are happy? Check this out:http://money.cnn.com/2015/06/11/technology/apple-store-lawsuit-tim-cook/

"In another email to Cook, sent on January 28, 2013, a Beijing Apple Store employee said, "Apple treats employees as animals." The unnamed employee noted that the Xidan Joy City Apple Store in China's capital city has an emergency exit that's blocked by Apple products."
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Author
12/25/2015 | 11:13:50 AM
Re: I wouldn't pay 40%. Would you?
Except Apple actually does meet the legal requirements (so I understand) of foreign residency for the pertinent parts of its organization via its corporate structure.

And if those "New Yorkers" spend 183 days each calendar year in Florida, they too qualify as Floridians; otherwise they're likely committing actual tax fraud -- which is different.

(Not legal advice.)
Ariella
50%
50%
Ariella,
User Rank: Author
12/24/2015 | 7:16:49 PM
Re: I wouldn't pay 40%. Would you?
@Joe I disagree. I think to be in the same category, I'd have to resort to the kind of dubious practices some New Yorkers engage in, like claiming to be residents of Florida on the basis of merely visitng there in the winter in order to avoid paying state income taxes. see http://www.businessinsider.com/how-much-money-apple-avoids-paying-in-taxes-2014-6
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Author
12/24/2015 | 7:02:34 PM
Re: I wouldn't pay 40%. Would you?
I don't think tax avoidance is the same thing -- or even compares to -- this notion of "corporate greed."

Do you go to H&R Block and ask your tax advisor to get you a higher refund?  Congratulations.  You're guilty of the same kind of "corporate greed" as Apple is -- just on a smaller scale.

If you don't owe tax money, you don't owe tax money.  Period.  It's not a matter of morality; it's a matter of the terms of our tax system and our social contract.

(Other issues concerning Apple, such as offshoring practices, are -- of course -- much more debatable matters.)
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Author
12/24/2015 | 7:00:13 PM
Re: I wouldn't pay 40%. Would you?
@Technocrati: I think it *was* anticipated by Apple.  In the early '80s (1983, I think?), the company set up a super-sweet tax deal and corporate structure in Ireland, so their foreign earnings are "taxed" there at essentially nothing.  No reasonable CEO repatriate that money into the US at anywhere close to 40%.
Ariella
50%
50%
Ariella,
User Rank: Author
12/20/2015 | 8:56:36 PM
Re: I wouldn't pay 40%. Would you?
@Technocratis certainly, it's not. What really fascinates me, though, is that Apple maintains its "halo" in the minds of many despite the fact that it actually represents the very epitome of corporate greed. In contrast, Walmart remains in the doghouse of public opinion, though it does a lot less evil in terms of evading taxes and amassing astronomical amounts of cash.
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Author
12/20/2015 | 4:58:30 PM
I wouldn't pay 40%. Would you?
I remember the lynch mob that was the Senatorial hearings regarding this issue.  The only one speaking any sense was Rand Paul, who argued that the repatriation rate needs to be much lower (he proposed 5%); otherwise, the federal government will just go on seeing $0.00.

As he put it, "Money goes where it's welcome."


2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Pandemic Responses Make Room for More Data Opportunities
Jessica Davis, Senior Editor, Enterprise Apps,  5/4/2021
Slideshows
10 Things Your Artificial Intelligence Initiative Needs to Succeed
Lisa Morgan, Freelance Writer,  4/20/2021
News
Transformation, Disruption, and Gender Diversity in Tech
Joao-Pierre S. Ruth, Senior Writer,  5/6/2021
Register for InformationWeek Newsletters
Video
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll