The headquarters of the ruling government party of Ireland, Fine Gael, was the site of recent apple massacre after angry citizens flocked to the offices to protest Apple’s massive tax breaks.
Members of the youth wing Sinn Fein impaled apples of the orange and red variety on the fences of Fine Gael’s Dublin offices following the revelation from the European Commission that Ireland intentionally lowered Apple’s tax burden.
Apple is by far Cupertino’s biggest and most recognizable employer, but the city’s new mayor has accused the tech giant of not pulling its weight when it comes to taxes.
Mayor Barry Chang, who’s only been on the job since December, is wasting no time in pursuit of his mission to get Apple to pay more taxes. He’s slated the local council for apparently cozying up to Apple, and even gotten himself booted out of Apple’s HQ on one occasion after turning up uninvited.
His latest comments, however, put him more directly in the sights of Tim Cook — as Woz uses a new interview to take a shot at Apple’s tax payments. His thoughts? The company should pay more than it does. Half of everything it earns, in fact!
Apple believes it’s the highest taxpayer in the U.S, but the company has still been subjected to intense scrutiny because the majority of its cash isn’t located stateside, but in offshore subsidiaries scattered around the globe.
In a U.S. Senate Permanent Subcommittee this summer, Apple was accused of using Irish tax loopholes to avoid paying on about $44 billion in foreign profits. By basing ghost subsidiaries in Ireland, Apple has been able to not pay a considerable amount of taxes to any country. Now the Irish government is considering changing its tax code to prevent such behavior from happening in the future.
In his interview today at the AllThingsD D11 conference, Apple CEO Tim Cook responded to questions from Kara Swisher and Walt Mossberg about Apple taxes. Relating his time with the congressional subcommittee this past week, Cook, said that he felt strongly about how the company was portrayed by lawmakers.
Cook said that he wanted to be a catalyst for a discussion, coming to the hearing with a proposal rather than a defense, one for a revenue-neutral and major overhaul of corporate taxes nationwide.
Cook said that he felt simplicity was good, and how Apple approaches everything. The current tax system, he said, results in a two foot high tax return every year. When asked what he would like to do with it, he replied, “I would suggest we gut it.”
This week on The CultCast: Apple Chief Tim Cook brings his Southern charm to Washington, hints at an iHologram; we break down the Apple tax debacle and say why their overseas billions are too legit to quit; and Xbox One vs. Apple TV, should Apple be worried?
All that and more on this week’s CultCast. Stream or download new and past episodes on your Mac or iDevice by subscribing now on iTunes, or hit play below and let the good times roll.
As part of expert testimony at today’s Senate Sub-Committee Hearing to Examine Offshore Profit Shifting and Tax Avoidance by Apple Inc., Professor J. Richard Harvey has made a compelling case that the tax system Apple is taking advantage of needs to have its loopholes closed.
Harvey — a distinguished Professor of Practice at Villanova University’s School of Law — says that while what Apple has done is acceptable under current International tax law, it still widely uses tax tricks and gimmicks to avoid paying what it fully owes.