Apple’s TaxApp

Dirty Little Secret

A recent NY Times story puts into plain view what many feel is Apple’s dirty little tax secret. According to the story, Apple paid just 9.8% of its income in taxes last year.  Not to worry though.  There is definitely an app for this!

Would you like to only pay 9.8% of your income in taxes?   Of course you would.  Who wouldn’t?   We’ll call this emotion envy.

You may bemoan your own recent day of tax reckoning, “Why don’t the same rules apply to everyone?  That company is getting away with murder!”  We’ll call this one anger.

Meet Apple’s TaxApp

TaxApp does a great job, but there is one catch.  You can’t download TaxApp from the App Store, buy it in a physical Apple store, or get it anywhere else for that matter.  Not even Amazon has it.  Go figure.  Rest assured though.  There is definitely an app for this!

Product features and benefits:

1. Reduces state income taxes by establishing operations & investments in nearby zero tax-rate Reno, Nevada.

2. Locates low-tax havens like Ireland, Luxembourg, and the British Virgin Islands.

3. Recognizes patent royalty revenue streams in these low-tax countries.

4. Utilizes digital nature of transactions (think iTunes) to strategically book sales in the low-tax countries.

Every Day Events

The NY Times article said that Apple paid just $3.3 billion in cash taxes globally last year on $34.2 billion in profits. Meanwhile, experts and others continue to debate the accuracy of the numbers mentioned in the article.  One article suggested that an apparent defensiveness on the part of Apple was indication of bad PR and poor media response.  It seems like everyone has an opinion or a slant on this story.

Could it be that Apple’s tax and legal folks are just doing what every other US company has the same legal rights to do?  And maybe doing a really good job of it?  Creating additional return for the company’s shareholders.  It happens each and every day in considerably less visible places than Apple’s books.   People doing what they get paid to do.  That’s not such a bad thing, is it?

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About Thomas W. Smith
Bizsinc - Bringing Business to Life

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