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If Apple makes other company to be their sole provider, isn't that effectively a way of tax avoidance? For example in a smaller scale, if you hire a company th
by intricatedetail 6y ago
If Apple makes other company to be their sole provider, isn't that effectively a way of tax avoidance?
For example in a smaller scale, if you hire a company that needs to do a project for you under your direction, you have to pay that company as if they were your own employees. In the UK this is called "IR35". Seems like for all intents and purposes TSMC is an Apple Fab?
- TheNorthman 6y agoIn no way is TSMC a Apple Fab. TSMC supply AMD, Broadcom, Qualcomm and Nvidia, among others.
- thu2111 6y agoOnly for this process node. TSMC make a lot of chips for other customers too.
- gsnedders 6y agoAnd per the article only the first year of production or so. There's also the question of whether Apple actually got any actual exclusive deal for the first year, or whether they simply outbid other companies for the production slots.
- intricatedetail 6y agoPeople can also work for multiple companies. If the product is made to order to exact Apple specs, then that sounds like avoidance. Situation would be different if Apple were buying TSMC designs.
- pasiaj 6y agoWhich tax do you feel is being avoided?
- redis_mlc 6y agoNo for 2 reasons: 1) It's a company-to-company transaction. Individuals are not involved. 2) It's a company in one country to another country. Employment law doesn't cross national boundaries.