Nobel economist Joseph Stiglitz calls Apple’s tax strategy ‘a fraud’

Jeanna Smialek and Alex Webb, Bloomberg:

“Here we have the largest corporation in capitalization not only in America, but in the world, bigger than GM was at its peak, and claiming that most of its profits originate from about a few hundred people working in Ireland — that’s a fraud,” Stiglitz said. “A tax law that encourages American firms to keep jobs abroad is wrong, and I think we can get a consensus in America to get that changed.”

Apple has a corporate structure that allows it to transfer money to low-tax jurisdictions, and one of those is Ireland, where the corporate tax rate is 12.5 percent — far below the U.S. top statutory rate of 35 percent. The European Commission, the European Union’s executive arm, is probing whether Ireland violated the bloc’s state-aid rules by helping Apple lower its Irish tax liability.

 Apple, which declined to comment on Stiglitz’s remarks, has firmly denied using any tax gimmicks, telling an EU tax panel in March that it had paid all of its taxes due in Ireland. Apple employs 5,500 people in Ireland, according to its website.

Stiglitz Calls Apple’s Profit Reporting in Ireland ‘a Fraud’ – Bloomberg

Via Cory Doctorow, Boing Boing, who says:

Apple, Google and other tech giants have shown themselves to be capable of resisting government demands when it suits their interests — see, for example, Apple’s brave and admirable stance on being forced to compromise its cryptography — but when it comes to things like paying its fair share of tax to compensate its host nations for the educations provided to its workforce, the roads they drive on, the courts and laws that defend their interests, and the health systems that keep the majority of their workforce dying from TB or yellow fever, the companies’ stance is “We comply with all laws and pay as much tax as they require.”

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