Solved Senate panel says Apple avoids billions in U.S. taxes

[Britton30]

Apple, the tech giant that has made a corporate bonanza by selling iPhones, iPads and iPods to consumers worldwide, has avoided tens of billions of dollars in U.S. taxes on its income and profits, according to a Senate report summary issued Monday and swiftly challenged by the firm.
The California-based firm has used a web of offshore entities — including three Ireland subsidiaries that it said don't have tax residency in any country — to cut some of its tax rates to 0.05%, the Senate Permanent Subcommittee on Investigations reported.

USA Today

 

[Layback Bear]

Britton 30 your web site USA Today give me a error 400.

 

[bobafetthotmail]

The US that is pestering a company over taxes?
Not gonna happen.
The loopholes Apple uses are there for a reason (benefit to the rich and megacorps).
Still, it wouldn't surprise me if MS or any company that can do it does the same. If it's legal to do so, why not?

 

[Layback Bear]

That is exactly what the investigation is all about. Is Apple doing this tax thing in a legal fashion.

 

[bobafetthotmail]

um, no. the last few sentences are

The Senate panel recommended strengthening the federal tax code to eliminate incentives for U.S. multinational firms to transfer intellectual property rights to offshore affiliates in low-tax areas.
In other recommendations, the panel called for reforming "check the box" tax rules and imposing current U.S. tax on income earned by any overseas affiliate managed and controlled in the U.S.

If they end the report asking the senate to change the laws, sounds that it's perfectly legal to me.
Besides, Apple isn't stupid. Doing something wrong at this scale would lend to a helluva retailation from the US government. It's generally easier to pay someone to make sure the laws have loopholes.

 

[Layback Bear]

Maybe the tax laws need changed. If Apple followed the laws it's a big woppy do about nothing. Just trying to get the eyes off of the bad things the I.R.S has been up to in the last 4 or 5 years concerning conservative organizations.
Any CEO of any company would try to legally use the tax laws to lower the companies taxes. If the tax laws are incorrect then Congress should change them.

 

[Britton30]

John fixed the link, I don't know how it went bad.

What Apple is doing is apparently legal but in my opinion not moral. Big, rich people and companies can avoid taxes on bajillions in profit, while a guy like me pays more than they do.

 

[Layback Bear]

I agree Gary. Their must be a way of a balanced approach to tax laws and regulation. You want companies like Apple to pay taxes but not tax them out of the country.
Congress can do this if they want to. I do remember not to long ago the previous Chairman of the House Financial Service Committeedidn't pay his taxes and all he could say was; I didn't know I had to pay. A small fine and all was forgiven. These are some of the kinds of people writing are tax laws.

 

[SIW2]

What Apple is doing is apparently legal but in my opinion not moral

That is the point. There have been quite a few questions about similar in the UK wrt other corporations ( not Apple as far as I know )

Here is something from way back in 1999 for example:

BBC News | The Company File | Murdoch 'pays no UK tax'

 

[Layback Bear]

Through the year I have read about Murdoch beating the system and others like him.
The reason must be he and the others are hiring people that are smarter than the people writing the tax laws. Or maybe, just maybe a little under the table money. Do I have proof on either, NO. If I did I surly would of had a life taking accident.

 

[bobafetthotmail]

Yeah, I too have a sneaking suspicion that there is money changing hands for the loopholes to "appear".
Not necessarily by Apple (probably not, but any powerful multinational company should qualify)
It wouldn't be the first time.

 

[ThrashZone]

This is a good taste,
All is fair in Love/ War and Taxes
Arizona Sen. John McCain, the panel's ranking Republican, said Apple "should not be shifting its profits overseas to avoid the payment of U.S. tax, purposefully depriving the American people of revenue."
I would have thought a Democrat would be up on this faze ?

 

[Layback Bear]

NO,NO,NO their is no party affiliation when creating tax loop holes or receiving campaign donations. They are all politicians.

 

[ThrashZone]

NO,NO,NO their is no party affiliation when creating tax loop holes or receiving campaign donations. They are all politicians.

I'll have to give you that one

 

[Britton30]

NO,NO,NO their is no party affiliation when creating tax loop holes or receiving campaign donations. They are all politicians.

Yep, they are all crooks, or will be after a couple of months in office.