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This is all a bit misleading. The general tone of the article is "Apple's not paying their fair share in Europe." The bigger context here is these are taxes owed mostly to the United States. That's where most of Apple's value-creating work is done and that's traditionally how international tax law works. What's happening is, Apple is parking funds in offshore tax havens while lobbying Congress to lower the tax rate for repatriating funds to the U.S. from ~40%, which they think is too high. So all this talk of "avoiding" taxes is true but it's a temporary avoidance.

That matters because it affects what would happen if Europe were to raise taxes. It wouldn't necessarily mean that Europe starts getting Apple's taxes moving forward. It would just eliminate the possibility of parking funds in Europe like this. Maybe it would prompt Apple to look outside Europe for havens. Or perhaps it would impact the stalemate that exists between U.S.-based multinationals and Congress. Ultimately, Congress doesn't want to miss out on those taxes in the long run and Apple doesn't want to get double-taxed when they repatriate. That's why Cook calls it "political crap"... Changes probably wouldn't benefit Europe in the long run.




> that's traditionally how international tax law works

No, that is how US tax law works. Most jurisdictions traditionally do not tax foreign earnings, but exempt them.


Its still highly questionable.

Try it at home: don't pay taxes for 10 years because YOU decide they are too high and tell Congress you won't pay until Congress will lover your taxes.

And make sure you don't have any animals at home and don't forget to turn on your surveillance cameras, because after third visit from IRS, local SWAT team is coming up with flash-grenades and fully automatic ARs.




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