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Irish Government May Close Apple's Biggest Tax Loophole
DavidGilbert99 writes "Ireland and its tax system came under some extreme scrutiny earlier this year when it was revealed that Apple funneled billions of dollars of revenue though three subsidiaries based in the country. Thanks to a loophole, none of these subsidiaries were tax-resident in Ireland, meaning they didn't even have to pay Ireland's relatively low 12.5% corporation tax rate. Worryingly for Apple, Ireland's finance minister may now shut this loophole. A measure within a new budget bill (PDF) would disallow Apple's status as a 'stateless' corporate entity for tax purposes. Apple will still be able to select a country like Bermuda as its tax residence, but it's a step in the right direction."
actually most fortune 500 companies do something like this. they find loopholes in the american taxes by funneling money through other countries, but the other countries have loopholes going the opposite direction so they dont have to pay taxes there either. facebook last year only had to pay 5% in taxes or something.
Different countries have different ways of appropriating revenue. Take Russia with their relatively low flat tax. It was made possible in a large part because of the State is being funded by oil tax revenues. In the case of Bermuda they have these low taxes for corporation and individual income but the kick is that land taxes are extremely high and they live on tourism revenues so you get taxed for snorkling, renting a hotel, etc. Monaco has the casino profits. Etc.
Google: http://www.irishtimes.com/business/economy/europe/concern-about-irish-tax-reflects-disquiet-about-google-1.1559370
M$: http://www.businessinsider.com/apple-microsoft-avoids-taxes-loopholes-irs-2013-1
Saudi Aramco, the actual current most valuable company, doesn't pay shit because they basically own the Saudi government, which is a pretty sweet gig if you can get it.
(But no, let's keep pretending that a cellphone manufacturer is the most valuable company in the world because they have the highest market capitalization when you sort everybody on Google Finance.)
Actually, it's the awful commenters that are turning people away. For example, you only had to do a search in the Slashdot Search bar for 'Google Tax' to see half a dozen published stories about Google's tax exploits.