Originally Posted by Frood
Clearly they feel Apples tax rate of 30% is too high. If they can claim the sale is via the internet and not Apple's ecosystem they just found a great way not to pay the Apple tax. They benefit from Apples ecosystem and users and don't pay to support it. Leave that to the suckers in the ecosystem. Brilliant!
Apple claims much of its IP is not generated in the US, but in Ireland. Instead of paying the 35% tax rate in the US, by claiming the income is generated in Ireland rather than the US, they avoid the taxes in the US. Never mind the expensive school systems they benefit from, or the incredible amount of taxpayer resources they use in tying up the legal system. Let the suckers within the US pay for that and they can get the benefits for free. Brilliant!
You are entirely incorrect. You've got a lot of sentiment, but light on facts. Here you go:
1. Apple charges a 30% fee as a digital retailer for content and items sold through their online retail store. This is an incredibly good deal for almost every manufacturer placing product in Apple's storefronts. They always complain to try and get lower costs, but the reality is that this is a steal for retail space, and an incredible bargain basement discount for "premium" popular retail space/presence.
2. Apple sells products in many countries around the world, it pays all the taxes it is required. They made a deal to locate Apple's European operations in Ireland in 1980. At the time, their government was trying to encourage high tech companies to open there, to attract higher paying technical jobs and kickstart local economies. They promised Apple a certain tax rate, and Apple has been there for decades. When the EU enacted a single currency in 1993 and enacted new tax laws, Ireland's existing economic policies were preserved and part of the country's charter into the EU. The structure of the EU is such that Apple Ireland can operate in Europe as a European entity, and retains their local (Irish) tax structure. If you think that's a problem, then basically you're saying the entire EU is dumb, but it has nothing to do with Apple. Any companies that took the risk of developing a high tech industry (including infrastructure financing) in the rural agrarian 1980's Ireland, deserve whatever tax break they are getting. It worked out very well for the country of Ireland, and now its an asset for the entire EU.
3. Apple creates IP in the US, and pays corporate taxes for any business operating expenses regarding that here (materials, employees, etc). It is then licensed to their international operations, which is the standard behavior for every international company on the planet and protected/expected by a wide variety of international treaties.
4. Expensive school systems have nothing to do with Apple, people pay for their own educations, Apple pays them for their work. Where's the relationship? I believe Apple even pays tuition for some employees who they wish to pursue additional degrees and education.
5. Apple pays for every second they are in US courts, you should read up on "legal fees" and "court costs". There is no taxpayer expense, unless the government is using it's resources to try and prosecute them. The Obama administration has directed the DOJ to pursue anti-trust litigation over ebooks against Apple. Until there is a final judgment, and if they are found guilty, and if Apple's penalties (including legal fees) cover the governments costs over this current trial, then no taxpayer "resources" will have been utilized. If Apple wins the case, or the penalties don't cover the governments costs for pursuing this trial, then taxpayer "resources" aka taxes will have been used. However that is the Obama administration's decision and responsibility to account/justify this, it's entirely their action.