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Apple Paid $0 In Taxes To New Zealand, Despite Sales of $4.2 Billion (nzherald.co.nz)
Apple paid no income tax to New Zealand's Inland Revenue Department for the last 10 years, according to an article shared by sit1963nz, prompting calls for the company to "do the right thing" even from some American-based Apple users. From the New Zealand Herald:
Bryan Chaffin of The Mac Observer, an Apple community blog site founded in 1998...wrote that Apple was the largest taxpayer in the United States, but 'pays next to nothing in most parts of the world... [L]ocal taxes matter. Roads matter. Schools matter. Housing authorities matter. Health care matters. Regulation enforcement matters. All of the things that support civil society matter. Apple's profits are made possible by that civil society, and the company should contribute its fair share.'"
Apple's accounts "show apparent income tax payments of $37 million," according to an earlier article, "but a close reading shows this sum was actually sent abroad to the Australian Tax Office, an arrangement that has been in place since at least 2007. Had Apple reported the same healthy profit margin in New Zealand as it did for its operations globally it would have paid $356 million in taxes over the period."
"It is absolutely extraordinary that they are able to get away with paying zero tax in this country," said Green Party co-leader James Shaw. "I really like Apple products -- they're incredibly innovative -- but it looks like their tax department is even more innovative than their product designers."
Apple's accounts "show apparent income tax payments of $37 million," according to an earlier article, "but a close reading shows this sum was actually sent abroad to the Australian Tax Office, an arrangement that has been in place since at least 2007. Had Apple reported the same healthy profit margin in New Zealand as it did for its operations globally it would have paid $356 million in taxes over the period."
"It is absolutely extraordinary that they are able to get away with paying zero tax in this country," said Green Party co-leader James Shaw. "I really like Apple products -- they're incredibly innovative -- but it looks like their tax department is even more innovative than their product designers."
"but it looks like their tax department is even more innovative than their product designers."
That's their job. Change your laws.
Seriously, if it's legal, what of it?
There is legal and there is ethical. Only people in the law profession put the former before the latter.
After all, everything slave owners did and the Third Reich (oh my Godwin!) was entirely legal at the time.
How is this modded insightful when it is the opposite?
Firstly Apple would have paid ZERO sales tax, because that isn't how the sales tax system in NZ works. Apple only has to remit the sales taxes that its customers have paid. It receives an input tax credit for all purchases in NZ that it makes. In essence this means that the net sales tax paid by a company is zero. Its customers are who have paid it.
As for your assertion that they shouldn't pay tax because they are just an importer, if another company imported apple products THEY would be paying corporate tax.
Apple NZ is the entity that is making the money. But it is using licensing fees to shift it's profits to another locale. That profit shifting is where governments are getting upset. And understandably so.
And your example of NZ sheep is also flawed, because this type of profit shifting can only work when you are a multinational. Those NZ farmers you use in your example will be selling their sheep to an exporter, that exporter will be selling them to a US importer and the US importer will be selling them to the final customer. That US importer will be paying US corporate tax. The ONLY way that they wouldn't be is if the whole network is owned by one company and they were charging some "sheep IP licensing fee" from a low tax country.
This is insane. A country has the power to make laws. New Zealand has laws and agreements in place that ALLOW this. Then, the same government whines if these agreements are used by companies.
If I make a rule in my house, where anybody coming in can take a candy per person, I should not complain about a greedy family of 36 shows up and takes 36 candies. I can change the rules, adjust them, fix them, but definitely not whinge about it.
Those laws are made to please the politician's rich friends -- as well as the politicians themselves -- so that they can move their assets and income to countries with stupidly low rates (Ireland, Caribbean, etc.). If you don't want this to happen, change the laws. If you can't change the laws without upsetting your rich friends, put up and shut up.
Free Software Magazine
Seriously, if it's legal, what of it?
There is legal and there is ethical. Only people in the law profession put the former before the latter.
After all, everything slave owners did and the Third Reich (oh my Godwin!) was entirely legal at the time.
Paying more taxes is not ethical. Nor is it like slavery or nazis. Governments are necessary evils to maintain social contracts and civilization. Overreaching government is unethical. Government double-taxing is unethical.
And...corporate income tax is a dumb idea in the first place, when those funds have already been taxes through both income and sales.
So where is your proof that New Zealand firms operating in the USA do not pay US taxes ?
If Apple does not want to pay taxes on profits like other businesses then perhaps an import duty on Apple gear is warranted, currently there is none.
Sales taxes are paid by the consumer, they are not based on business profits, they are collected and passed on by the retailer.
So for example if I buy an Apple computer at Harvey Normans, Harvey Normans passes on the sales tax to the IRD, not Apple.
Another approach could be
If Apple wants the protection of the laws here in New Zealand then it should pay taxes to enjoy of the benefits of citizenship
If it does not want to pay taxes, then it places its self outside of the laws, so for example they would have no patent or copyright protection in NZ.
Currently corporates have all the benefits of a country and don't pay any of the costs.
As for WHY apple should pay taxes.
Lets assume YOU are in business, and at the end of each year you have $1 Million in profits, and from this you pay $300,000 in taxes. Those taxes are used for roading, infrastructure, the legal system, etc etc etc, i.e. all the things from a civil society you benefit from.
Now Apple comes along, they are "outside" you country, then enjoy ALL the benefits of roads etc etc etc that you do, but they don't pay taxes, so in real terms they are $300,000 better off each year than you, money they can put in the bank for a rainy day.
We have a housing crisis, and business down turn, things are rough and you have to close down. Apple on the other hand has a huge stock pile of cash so they can ride out the rough times (because they did not pay taxes), so they remain in business where by you loose your business and your house.
THAT is why corporates should be expected to pay taxes, so they compete on a fair and equal basis with those local companies who can not dodge the taxes.
Or to put in in an American setting, if a Chinese firm is able to dodge taxes and use that tax advantage to put an American company out of business causing people to loose their lively hoods and houses, do you STILL think it is fair the Chinese firm pays no taxes.
Nope. Tax evasion definitely falls into the former category, wrong regardless of "legality". Especially if achieved via legalistic shenanigans. And doubly so if those shenanigans are only possible due to favourable tax laws and interpretations obtained via corrupt political lobbying and campaign financing.
Corporations benefit from all the things that taxes provide - roads, police, education, and thousands more - so they should contribute to them as well.
hate to break it to you, but you're NOT a temporarily embarrassed millionaire. These tax scams you're championing (out of some brainwashed mindless fantasy that one day you'll "make it" and be part of the exploiter classes rather than the exploited) are NEVER going to benefit you. They're stealing from you, and from everyone else.
The fuck?
In 2005 Trump paid higher taxes than MSNBC, Obama, and Bernie Sanders.
You are a fucking imbecile.