Actually, he's probably a criminal if he's not paying sales tax.
In most states which have a sales tax, you are obligated to pay it even if the seller does not collect it. If he's not paying sales tax in one of those states, he's breaking the law.
It's really sad that Amazon is so trusted when a large part of their business success has been based on the appearance of a cost advantage because they're not collecting sales tax and so many dishonest people don't pay it. As more and more states start requiring them to collect the tax, their cost advantage is shrinking - and their margins will be squeezed even further.
"Criminal" is a little harsh don't ya think? He likes Amazon and does not have to pay sales tax. OK so he probably doesn't state them on his tax returns, big deal. As these sales tax exemptions go away for online purchases, Amazon will definitely be effected to a degree, but that goes for all online stores that don't currently charge for sales tax. It will be interesting to see just how this effects them though. Will it make people return to buying locally?
Of course, many people are on record in this forum as stating that it's okay for companies to find and use as many tax dodges as possible. Do people trust Apple less for making up incredibly convoluted tax avoidance schemes?
That's just another example of the media attacking Apple mindlessly - and biasing consumers against Apple.
Apple doesn't do anything differently than anyone else. There's no complex tax avoidance scheme - they simply pay taxes on profit in the country where it is earned rather than the US. That's standard practice, perfectly legal, and doesn't involve any convoluted schemes. Every other global company does the same thing.
"Criminal" is a little harsh don't ya think? He likes Amazon and does not have to pay sales tax. OK so he probably doesn't state them on his tax returns, big deal.
It is a big deal. It's against the law. That's why he's a criminal.
Apple doesn't do anything differently than anyone else. There's no complex tax avoidance scheme - they simply pay taxes on profit in the country where it is earned rather than the US.
Yes, what Apple does to avoid taxes is the same as many other multi-national companies do and it's completely legal. However it doesn't mean that Apple is paying taxes in the country where the revenue originated. Example: A German iOS user buys a song from iTunes. The income is from a German user but shown as collected in Luxumborg AFAIK where Apple is allowed to pay a lower tax rate than they would in Germany.
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"Criminal" is a little harsh don't ya think? He likes Amazon and does not have to pay sales tax. OK so he probably doesn't state them on his tax returns, big deal. As these sales tax exemptions go away for online purchases, Amazon will definitely be effected to a degree, but that goes for all online stores that don't currently charge for sales tax. It will be interesting to see just how this effects them though. Will it make people return to buying locally?
Amazon beats out Apple and Google as most trusted U.S. company
This will be all the more delicious when Amazon's bubble finally pops…
That's just another example of the media attacking Apple mindlessly - and biasing consumers against Apple.
Apple doesn't do anything differently than anyone else. There's no complex tax avoidance scheme - they simply pay taxes on profit in the country where it is earned rather than the US. That's standard practice, perfectly legal, and doesn't involve any convoluted schemes. Every other global company does the same thing.
It is a big deal. It's against the law. That's why he's a criminal.
Quote:
Originally Posted by jragosta
Apple doesn't do anything differently than anyone else. There's no complex tax avoidance scheme - they simply pay taxes on profit in the country where it is earned rather than the US.
Yes, what Apple does to avoid taxes is the same as many other multi-national companies do and it's completely legal. However it doesn't mean that Apple is paying taxes in the country where the revenue originated. Example: A German iOS user buys a song from iTunes. The income is from a German user but shown as collected in Luxumborg AFAIK where Apple is allowed to pay a lower tax rate than they would in Germany.
http://www.dailymail.co.uk/news/article-2137415/Apple-used-legal-tactics-avoid-paying-BILLIONS-taxes-year-despite-record-profits.html