Results 1 to 10 of 10

Your favorite Apple, iPhone, iPad, iOS, Jailbreak, and Cydia site.

Thread: Apple Escapes The British Tax Man Again?

  1. #1
    What's Jailbreak? Michael Essany's Avatar
    Join Date
    Aug 2009
    Valparaiso, Indiana
    Thanked 1,491 Times in 577 Posts

    Default Apple Escapes The British Tax Man Again?

    Apple didn't cough up much to jolly old England in corporate taxes last year. More specifically, perhaps, it paid ZERO corporation tax in the United Kingdom in 2012.

    Although some are up in arms about the matter, Apple really doesn't have to defend itself given the presence of circumstances clearly in the company's favor (and within the letter of the law), according to a report Monday from Forbes.

    First, all iTunes sales are actually made in Luxembourg. Why? The VAT rate there is lower and one of the peculiarities of EU tax law is that “electronic services” pay VAT in the country they emanate from.

    Second, for sales outside the US, Apple apparently buys the equipment from the manufacturers in China through an Irish company. Today's explanation from Forbes indicates that the equipment is then sold to other dealers, distributors, or Apple Stores around the world. "Prices are such that the stores don’t really make much money," Forbes reports. In fact, the margins pretty much cover the actual fixed and variable costs of having stores and making sales.

    The final part is in those operating profits in the UK. The fact is that operating profits are not what are taxed: profits before tax are what are taxed. And issuing stock to the management is a part of doing business.
    If anything is clear from today's report, it's that there is arguably no company of Apple's size in the world that's better at crunching numbers and doing business in a way that benefits the bottom line to an unbelievable extent.

    Source: Forbes

  2. #2
    Grumpy *T*'s Avatar
    Join Date
    Nov 2011
    Turn around slowly...
    Thanked 48 Times in 39 Posts

    Whoever designed this saved Apple billions. I'll bet anyone here that he is not earning more than 1 million a year.

  3. #3
    I can't wait for Samsung to copy this…

  4. #4
    If Samsung doesn't, PC will.

  5. #5
    Shows that Apple is as bad as Google, Amazon and Starbucks when it comes to paying UK tax

  6. The Following User Says Thank You to rickuk For This Useful Post:

    dsg (2013-07-02)

  7. #6
    Yeah, as a British citizen it's somewhat galling that I have to pay £1000's a year in tax and apple / google etc pay sweet bugger all. C'mon Cameron crack down on this and close the loophole

  8. The Following User Says Thank You to docmagoo2 For This Useful Post:

    dsg (2013-07-02)

  9. #7
    What's your point?

  10. #8
    that our tax laws are poor and need a radical revise
    Last edited by dsg; 2013-07-02 at 03:57 PM.
    privacy isn't about having something to hide, another view here

    look here all grammar police, indulge me.

  11. #9
    Livin the iPhone Life bigboyz's Avatar
    Join Date
    Feb 2009
    North East Coast
    Thanked 430 Times in 265 Posts

    I agree^^. Yet, with Apple they seem to throw stock options around as they are more valuable in the end...for now that is.

  12. The Following User Says Thank You to bigboyz For This Useful Post:

    dsg (2013-07-02)

  13. #10
    Tax avoiders are rouges in anyone's language! Money grabbers!

  14. The Following User Says Thank You to Albut For This Useful Post:

    dsg (2013-07-02)

Posting Permissions
  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts