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I think it's quite clear that Apple has a tax rate of 0.005% instead of the normal 12%. Can I also get such a discount? What about if I start a company, can I
by blub 10y ago
I think it's quite clear that Apple has a tax rate of 0.005% instead of the normal 12%.
Can I also get such a discount? What about if I start a company, can I get it then?
It's true that I don't hire thousands of employees, but I'm not rich to the tune of hundreds of billions either.
It's all about proportions really. Let's all pay 0.005% tax and see everything turn to crap around us. But we'll be rich!
- rimantas 10y agoIs it really clear?
- Arnt 10y agoI didn't quite get it... 0.005% of what? Profit on sales in Ireland? Profit on sales in other parts of the world?
- Arnt 10y agoOh, I get it, the sum of those two. Are people complaining that when Apple sells a phone in Italy, Ireland taxes that at zero? Is that the complaint?
- Wilya 10y agoApple considers that all sales across Europe actually happen in Ireland, so taxes on profit on sales in the whole EU are paid in Ireland. That part is perfectly legal within the EU. The issue is that the normal tax rate in Ireland is around 12%, and Apple uses accounting tricks and tax exceptions to lower their effective tax rate there to 0.005%. That is the part that the the European Commission ruled illegal.
- pjc50 10y agoEffectively they argue that, in EU countries and India and Africa, the profit happens in Ireland. This is done through transfer pricing. In Ireland, they argue that the profits happen at a "head office" which was not based in any country and did not have any employees or own premises. (The ruling: http://ec.europa.eu/competition/state_aid/cases/253200/253200_1582634_87_2.pdf http://ec.europa.eu/competition/state_aid/cases/253200/25320... linked from http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_38373 http://ec.europa.eu/competition/elojade/isef/case_details.cf...) - search for "AOI"
- marktheknife 10y agoYou could have done it just a few years ago. The international tax rules are tightening though, so you've missed the boat.