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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."
I'm sure no other companies use this.
I will not speak out about this practice that hurts me indirectly because I am deluded into thinking that any day now I'll be rich enough to make use of it myself.
- Joe Sixpack Americano
apple will just move to the next free zone
If you start charing us tax, you'll lose even the tax we're paying you now, because we'll move somewhere else. Err... right, we're not paying any. Oh, oh, I know! Job, if you charge us tax we'll have to fire the two people that earn minimum wage for us in your country! You anti-capitalistic pigs are destroying jobs!
Captcha: avarice - I can haz source code and database of this captcha? I really likez.
Apple is not the only company doing this. Google does it was well.
I don't understand why countries like Ireland or Bermuda or wherever don't all just charge a small tax of some kind (like say 5%) that keeps the companies coming there, but gets them tons of money. What does Bermuda get out of having Apple "based" in Bermuda if they don't get any tax revenue? They get no additional jobs or property taxes (except maybe a mailbox rental).
It's about time the multinational thieves got lynched and paid their fair share.
I do not fail; I succeed at finding out what does not work.
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
A loophole is unintended.
If anyone thinks that the tax code and the ability to do exactly what Apple (and others) are doing isn't completely intention is an idiot.
I have no problem with corporations taking advantage of whatever the law allows them to do but there should be consequences. If the government is going to consider a corporation to be like a person with 1st amendment rights and money to be speech, well they are declaring their corporate personhood to not be a citizen, only a resident. Residents don't get to vote, only citizens. If you don't have a vote then you shouldn't have any right to contribute anything to the election process. If you want a voice in the government then pay taxes.
Tax reform would be fine, but ONLY if we get rid of the corporate loopholes.
The mere semantics of governments calling it a "corporate tax" is disingenuous. A corporation is not an inanimate object separate from humans. An income tax on corporations is really an income tax on people, which include its shareholders, employees, and many times its customers as reflected in the price of products. And since shareholders/employees already pay income tax on their earnings and customers sales tax on their purchases, a corporate tax is really just double taxation. If governments want to have an honest debate about corporate tax they should first be honest about what it really is and who actually pays it. When that happens I suspect there will be less lynching of corporations by the uninformed citizenry.
I own Apple shares. So in a small way, I already benefit from this practice.
Unless you own millions of dollars worth of shares, I assure you that the net benefit between your gains on that stock and what you personally have to chip into the US coffers because of companies like this is a negative for you.
If companies like this repatriated the profits that they are stashing overseas, much of our government budget problems would be solved. As it is, you and I are stuck with the bill - contrary to the propaganda on Fox News and Talk Radio.
Yes, the US tax system is THE worst in the World and needs to be reformed (like eliminating the loopholes that allow the very rich to pull shit like this) so that companies don't have to nor feel the need to do this shit. And we need to bring back Eisenhower (Republican) era Income Tax rates. Remember, those were the best times for the US economy so saying that taxes kill prosperity is not true - if anything, it increases it because it stops this obscene disparity of wealth.
Folks, we are currently headed to a Third World economy: very rich and us peons who have no hope to get anywhere. That wasn't true back when the top income tax bracket was over 90%.
Why does Apple get to lobby the government or expect the support of the government when they won't pay for it?
Maybe the next time Apple has a patent dispute, the Chinese authorities embargo their product at the docks, or the EU starts making demands the US government should tell them to sit down and take a number.
I love how corporations and the rich hate the government and won't pay for it until they need it to do their bidding.
Few things sadder than someone who proudly declares that they have nothing important to say and yet who fails to even deliver that simple of a message on time.
If it's for-profit but free, you're not the customer -- you're the product (e.g., the Slashdot Beta's "audience").
Sometimes reading past the title of the post is helpful. The GP answered your question before you asked it.
And then once they move to the next lowest rung on the race to the bottom, what -- are they gonna set up robots there or something?
I tend to find that if the only thing someone can offer in defense of a policy is that it's "job creating," then they damn it with faint praise. Many extremely negative behaviors "create jobs." Pimps create jobs. Drug lords create jobs. People who dump toxic waste create all kinds of jobs in the cleanup. Heck, bureaucratic redtape creates jobs to deal with it all!
Saying something "creates jobs" is nothing more than a prettier version of the broken window fallacy.
If it's for-profit but free, you're not the customer -- you're the product (e.g., the Slashdot Beta's "audience").