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Ireland looks to close loophole Apple uses to avoid high U.S. taxes - Page 2

post #41 of 42
Quote:
Originally Posted by TedCranmore View Post

By describing a technique that is well known but not actually used by apple you are confusing the situation

1. apple does not employ shifting funds through the Cayman Islands or Caribbean islands
2. Apple does not shift revenues paid in the usa to Ireland
3. Funds "stored" in Ireland can either be used offshore (e.g. Build an apple store), or they sit there waiting to be repatriated. They will be brought back to the us if rates are lowered or a tax holiday is created.

1. Apple does funnel money through Caribbean tax havens (via Braeburn Capital).

2. Not true, "Apple has set up a cost-sharing agreement with its Irish subsidiaries that gives them a disproportionate share of the profit from research and development that occurs in the United States."

post #42 of 42
Quote:
Originally Posted by hmm View Post
 

Why assume the influence originated here? They have taken flack in Europe, as have other countries (starbucks and google come to mind). A year or so ago the complaint was that they avoided VAT by conducting itunes sales through Luxemburg. Obviously consumers pay VAT directly, but it did provide a more competitive edge on pricing. I'm not looking to argue whether that was good or bad, just that it's unlikely that the pressure was unilateral here.

 

iTunes/App store purchases are via Ireland, meaning that all EU customers pay the higher Irish VAT rate of 23%.

 

Amazon sell digital content via Luxembourg, meaning that customers pay the lower vat, Apple don't.

 

TBH I can't remember what the angle is

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