Russia's new Internet czar vows to make Apple & Google pay more taxes

Posted:
in General Discussion
In an effort to bolster local competitors, Russia's new Internet adviser to president Vladimir Putin plans to raise taxes on American companies, singling out Apple, Google and Microsoft as targets.

Online Store Russia


German Klimenko hopes that new measures targeting American businesses will help homegrown companies like Yandex and Mail.ru, according to a new profile by Bloomberg. Russia is exploring new revenue avenues as the country faces its worst recession since Putin took office in 2000.

While Klimenko said he plans to target Apple for taxes, his focus seems greater on rivals Google and Microsoft. In particular, he plans to switch Russia's computers from Microsoft Windows to Linux, citing the company's compliance with sanctions on Crimea.

Google also refuses to respond to law enforcement requests from Russia, despite compliance in other nations. Klimenko sees that as a "potential threat" to Russia's national security.

Apple's online store in Russia opened in June of 2014. It is the only direct sales path for Russian consumers, as there are no brick-and-mortar Apple stores in the country.

Last September, Apple began hosting local iCloud data within Russia, in compliance with a new law in the country. Its compliance ensured that its online services were not blocked in Russia. Apple has noted that all data stored on servers is encrypted and could not be accessed by outside parties.
«1

Comments

  • Reply 1 of 22
    I believe that would be a clear violation of existing so-called free trade agreements. Russia (not to mention China) should be kicked out of the WTO.
    edited February 2016 latifbpjbdragoncnocbui
  • Reply 2 of 22
    I believe that would be a clear violation of existing so-called free trade agreements. Russia (not to mention China) should be kicked out of the WTO.
    I come here to say the same thing. Why is China still allowed in WTO? Why is it allowed in at all?
    edited February 2016 latifbpjbdragonfrankieSpamSandwich
  • Reply 3 of 22
    crowleycrowley Posts: 5,647member
    I believe that would be a clear violation of existing so-called free trade agreements. Russia (not to mention China) should be kicked out of the WTO.
    What would be in clear violation?  No policy has been announced. An economic adviser having an opinion is not grounds for kicking a country out of an international organization.
    singularitylord amhran
  • Reply 4 of 22
    I believe that would be a clear violation of existing so-called free trade agreements. Russia (not to mention China) should be kicked out of the WTO.
    I guess invading the Republic of Georgia and Ukraine would be violations of something too.  Isn't homosexuality still a crime there?  Doesn't seem like the Russian government is too worried about toothless agreements or boobs like John Kerry.  Maybe we should try another Russian reset button?  

    Anyhow, when the EU wants to grab more money, we usually have some folks that say that Apple ought to pay their fair share.  Why doesn't Apple have to pay their fair share in Russia?  I know, it looks like a blatant cash grab, but Russian bureaucrats gotta eat too.  And take their trips to the French Riviera, Monaco, etc.  BMWs don't come cheap either.   Apple could solve this with a few well placed gifts.
    latifbpjbdragonsergioz
  • Reply 5 of 22
    latifbplatifbp Posts: 544member
    Every country is now jumping on the EU-cash-grab-from-Apple-train in the name of "taxes"
    mwhite
  • Reply 6 of 22
    tundraboytundraboy Posts: 1,597member
    "In an effort to bolster local competitors" really means "In an effort to bolster Vladimir Putin's cronies (and the payments they send to Vlad's Swiss bank accounts)".
    edited February 2016 ronn
  • Reply 7 of 22
    larryalarrya Posts: 535member
    williamh said:
    I believe that would be a clear violation of existing so-called free trade agreements. Russia (not to mention China) should be kicked out of the WTO.
    I guess invading the Republic of Georgia and Ukraine would be violations of something too.  Isn't homosexuality still a crime there?  Doesn't seem like the Russian government is too worried about toothless agreements or boobs like John Kerry.  Maybe we should try another Russian reset button?  

    Anyhow, when the EU wants to grab more money, we usually have some folks that say that Apple ought to pay their fair share.  Why doesn't Apple have to pay their fair share in Russia?  I know, it looks like a blatant cash grab, but Russian bureaucrats gotta eat too.  And take their trips to the French Riviera, Monaco, etc.  BMWs don't come cheap either.   Apple could solve this with a few well placed gifts.
    This is protectionism (making Apple's goods more expensive than competing, domestic products), which is different from ending favoritism by making tax law consistent and removing tax havens. 
    ronntallest skil
  • Reply 8 of 22
    Honestly, Apple should abandon plans to open in Russia.
  • Reply 9 of 22
    matrix077 said:
    I believe that would be a clear violation of existing so-called free trade agreements. Russia (not to mention China) should be kicked out of the WTO.
    I come here to say the same thing. Why is China still allowed in WTO? Why is it allowed in at all?
    Because China owns allot of US debt. As for Russia, yeah lets single out US companies, obviously its political payback for low gas prices which is hurting Russia and believed to stem from US manipulating the oil market.
    ronn
  • Reply 10 of 22
    rs9rs9 Posts: 68member
    Everyone wants a piece of the Apple "pie."  Nations like Russia (and Putin) make bad decisions, then you blame someone else.
  • Reply 11 of 22
    matrix077 said:
    I believe that would be a clear violation of existing so-called free trade agreements. Russia (not to mention China) should be kicked out of the WTO.
    I come here to say the same thing. Why is China still allowed in WTO? Why is it allowed in at all?
    Follow the money. Big US companies are maintaining their margins through Chinese exports, and they're lobbying to continue.
  • Reply 12 of 22
    radarthekatradarthekat Posts: 2,928moderator

    Russia's new Internet czar vows to make Apple & Google collect more taxes from its citizens


    Corrected that headline for you.
  • Reply 13 of 22
    larrya said:
    williamh said:
    I guess invading the Republic of Georgia and Ukraine would be violations of something too.  Isn't homosexuality still a crime there?  Doesn't seem like the Russian government is too worried about toothless agreements or boobs like John Kerry.  Maybe we should try another Russian reset button?  

    Anyhow, when the EU wants to grab more money, we usually have some folks that say that Apple ought to pay their fair share.  Why doesn't Apple have to pay their fair share in Russia?  I know, it looks like a blatant cash grab, but Russian bureaucrats gotta eat too.  And take their trips to the French Riviera, Monaco, etc.  BMWs don't come cheap either.   Apple could solve this with a few well placed gifts.
    This is protectionism (making Apple's goods more expensive than competing, domestic products), which is different from ending favoritism by making tax law consistent and removing tax havens. 
    That's a very good point. 
  • Reply 14 of 22
    Honestly, Apple should abandon plans to open in Russia.
    Always been there, just through boutique resellers.  I worked there in the 90's and bought  Macs for the company I worked for. 
  • Reply 15 of 22
    ibillibill Posts: 391member
    matrix077 said:
    I come here to say the same thing. Why is China still allowed in WTO? Why is it allowed in at all?
    Because China owns allot of US debt. As for Russia, yeah lets single out US companies, obviously its political payback for low gas prices which is hurting Russia and believed to stem from US manipulating the oil market.
    How exactly does the US manipulate the international oil market?
  • Reply 16 of 22
    Russia's internet czar should probably be spending more time addressing the country's hacker/e-thievery culture. 
  • Reply 17 of 22
    tundraboytundraboy Posts: 1,597member
    ibill said:
    Because China owns allot of US debt. As for Russia, yeah lets single out US companies, obviously its political payback for low gas prices which is hurting Russia and believed to stem from US manipulating the oil market.
    How exactly does the US manipulate the international oil market?
    Hey, no harassment with intent to force critical thought is allowed in this corner of cyberspace!
  • Reply 18 of 22
    I believe that would be a clear violation of existing so-called free trade agreements.
    Good; screw ‘em. End the agreements in the first place.
  • Reply 19 of 22
    cnocbuicnocbui Posts: 3,613member
    ibill said:
    Because China owns allot of US debt. As for Russia, yeah lets single out US companies, obviously its political payback for low gas prices which is hurting Russia and believed to stem from US manipulating the oil market.
    How exactly does the US manipulate the international oil market?
    Are you serious?  What else would you call basic technological innovation allowing for economical extraction from previously uneconomic resources?  Just ask OPEC, they know a thing or two about manipulation.
  • Reply 20 of 22
    He is not a "czar", he is only a President Advisor about Internet-related questions and issues. Basically, Apple pays to EU (anybody, who sells to EU citizens, pays to EU), Russia just wants the same. It has to be fare for every country.
Sign In or Register to comment.