big brother 84
- big brother 84
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flootist said:I just can't back Cook or Apple on this one, they are in the wrong. Also, if by 'anti-American', Cook means, 'anti-American *corporation*', then I don't think that's necessarily a bad thing. We already have enough co-mingling of corporate and political interests here in the States (and the definition of 'corporate' very much includes Silicon Valley), I've been happy to see the resistance in other countries to efforts on the part of Google etc. at infiltration. I very much agree with JoeBanks, this smacks more of being petulant than being some kind of ethical crusade.
The US government and American companies should target the EU back, hit them hard enough to get them dissolved. To hell with any consequences to be fixed later.
The EU is an ill conceived organization managed by idiots that should not exist. The world would be better without them.
It is sad to see Tim Cook taking this line. Most of the people on this forum will stay with Apple to the bitter end but vast swathes of the unconverted may just look at this situation and decide to go for Samsung for their next phone.
Let's be honest, Apple are the easy target in this story but many others will follow. International corporations of all nationalities take the p*ss when it comes to paying their taxes and unless you happen to be a major shareholder in one of them I don't really understand why people here are prepared to defend them. Those of us that run small businesses don't have the resources to exploit tax loopholes. We end up paying more because they pay less.
latifbp said:Apple is based in the U.S. They should not have to incorporate everywhere they do business. Thus they should really only be paying taxes in the U.S.
toddzrx said:big brother 84 said:So you're saying you don't believe in a level playing field for large and small companies?
Small companies cannot afford the international accountants that exploit these loopholes.
stantheman said:Apple does not rely on Irish accounting procedures to avoid paying profits taxes on foreign sales, but to delay paying them until later. The tax code doesn't levy the tax until the foreign earnings actually cross the border. Apple, like other companies, do that because of two widely held views: the tax rate (%) levied by the USA on foreign earnings is currently too high, and tax reform (lower tax rates) are likely in the relatively near future.
Now, Apple computes its what-if tax bill every year, based on the assumption that its foreign earnings were actually remitted back to the USA. Then Apple sets those dollars aside (cash, Treasury bonds, etc.) while waiting for the day when Congress reforms the tax code. That obligation is shown as a liability on Apple's balance sheet, and the Treasury bonds are part of its "cash and equivalents" reported in the press. One day, Apple will remit its foreign earnings from past years, and also pay its tax bill to the IRS -- at the new, post-reform tax rate.
The EU evidently wants to lay hands on that money before the US tax code is reformed. Its actions are based on the erroneous argument that Apple has somehow colluded with Ireland to escape taxation -- as opposed to legally delaying the date of taxation until a more propitious time.
Apple has not evaded its taxes. No individual EU nation is claiming that it did, and the IRS recognizes that Apple is in compliance with US law. Tim Cook is right.
apple ][ said:monstrosity said:If I'm honest, I wish the US would just nuke the EU and be done with it.
They are in so much trouble, and it's all their own doing. What a bunch of socialist dumbasses.
krawall said:I'm so ashamed of being European right now and thank goodness I don't live there anymore. It's one thing of slapping the hands of Ireland who offered this deal to Apple and to discontinue this practice which I'm all for. But it's another thing with demanding money for something that has happened in the past that was in full accordance with the law.
I listened to Tim Cook trying to defend Apple's pitifully low tax rate on the BBC news this morning and it just sounded bad. Very bad PR. Attacking the EU is very unwise. All the people whose businesses pay tax at 20% are looking at this and saying why should Apple pay tax at less than 1%.
As a life-long Apple evangelist, even I find this Apple hard to swallow.