Taxes
Apple’s headquarters are in Cupertino, Calif. By putting an office in Reno, just 200 miles away, to collect and invest the company’s profits, Apple sidesteps state income taxes on some of those gains. California’s corporate tax rate is 8.84 percent. Nevada’s? Zero. Setting up an office in Reno is just one of many legal methods Apple uses to reduce its worldwide tax bill by billions of dollars each year.
As it has in Nevada, Apple has created subsidiaries in low-tax places like Ireland, the Netherlands, Luxembourg and the British Virgin Islands — some little more than a letterbox or an anonymous office — that help cut the taxes it pays around the world.
Almost every major corporation tries to minimize its taxes, of course. For Apple, the savings are especially alluring because the company’s profits are so high. Wall Street analysts predict Apple could earn up to $45.6 billion in its current fiscal year — which would be a record for any American business. Without such tactics, Apple’s federal tax bill in the United States most likely would have been $2.4 billion higher last year, according to a recent study by a former Treasury Department economist, Martin A. Sullivan.”
Why indirect taxes pose a growing risk to global companies
Managing global indirect taxes is rising up the agenda of the tax function, which is no surprise given the scale of the numbers involved and the fact that it is an above-the-line tax.
We look at leading practices in managing the burden of global indirect taxes and why companies should assess and manage the growing risk of indirect tax controversy.
Economists and other public finance experts may differ in their definition of “indirect taxes.”
However, here we refer to them as any taxes not directly imposed on the income of a person or organization.
Globally, then, indirect taxes may include value-added taxes (VAT), goods and services taxes (GST), sales and use taxes, withholding taxes on cross-border purchases from suppliers,
As it has in Nevada, Apple has created subsidiaries in low-tax places like Ireland, the Netherlands, Luxembourg and the British Virgin Islands — some little more than a letterbox or an anonymous office — that help cut the taxes it pays around the world.
Almost every major corporation tries to minimize its taxes, of course. For Apple, the savings are especially alluring because the company’s profits are so high. Wall Street analysts predict Apple could earn up to $45.6 billion in its current fiscal year — which would be a record for any American business. Without such tactics, Apple’s federal tax bill in the United States most likely would have been $2.4 billion higher last year, according to a recent study by a former Treasury Department economist, Martin A. Sullivan.”
Why indirect taxes pose a growing risk to global companies
Managing global indirect taxes is rising up the agenda of the tax function, which is no surprise given the scale of the numbers involved and the fact that it is an above-the-line tax.
We look at leading practices in managing the burden of global indirect taxes and why companies should assess and manage the growing risk of indirect tax controversy.
Economists and other public finance experts may differ in their definition of “indirect taxes.”
However, here we refer to them as any taxes not directly imposed on the income of a person or organization.
Globally, then, indirect taxes may include value-added taxes (VAT), goods and services taxes (GST), sales and use taxes, withholding taxes on cross-border purchases from suppliers,