Over the past couple of days, we have talked quite a bit about Apple Inc. (NASDAQ:AAPL)’s tax practices and where the Cupertino based company stands as it moves forward.
While Apple claims that it is doing everything according to the law, there are people on both sides of the fence.
Not sure of what Apple Inc. (NASDAQ:AAPL) is up against? In this case, you can check out our post: Apple Inc. (AAPL)’s 17-Page Statement: For Your Eyes Only
This posts gives you an inside look at the company’s tax policy, including why it feels that they are in compliance with the laws that have been set forth.
If you have been keeping up with this saga, you know there is quite a bit going on. For this reason, it is only natural to be faced with some confusion.
GravitationalPull.net recently published a piece touching on some of the myths associated with Apple Inc. (NASDAQ:AAPL)’s perceive tax avoidance.
It is important to stay aware of the facts as well as the myths that can often times get in the way.
With all this in mind, let’s take a look at the five biggest myths, as published by GravitationalPull.net:
MYTH 1: Apple doesn’t owe U.S. taxes on its sales outside of the United States
Simply put, this is not true. All U.S. based companies are required to pay corporate income tax on all profits.
MYTH 2: Apple is following the spirit of the tax laws
This is more or less a matter of opinion, but there is definitely some gray area that has people confused as to what Apple Inc. (NASDAQ:AAPL) is trying to accomplish.
MYTH 3: Apple doesn’t use tax gimmicks
While Apple executives, including CEO Tim Cook, took the time to talk about tax gimmicks the company does not employ, he did not touch on practices that appear to be borderline from the outside looking in.
MYTH 4: Apple pays the least taxes the law allows
Here is a quote from the piece, touching on this point:
“As a couple of tax experts noted at Tuesday’s hearing, Apple’s tax maneuvers are aggressive but hardly the most aggressive in corporate America, where 30 large companies paid no taxes at all from 2008 to 2010. Just as an example, Apple has chosen to re-route almost all its profits outside of the Americas through no-tax subsidiaries in Ireland. But profits coming from Canada, Brazil and Mexico come home to be taxed in the U.S.
MYTH 5: Apple was singled out for criticism
This is definitely not true, as many other companies have run into similar issues in the past. It is unfair to say that Apple Inc. (NASDAQ:AAPL) is being picked on.
What do you think about these five myths?