Tuesday, May 28, 2013

Apple taxes

Some Americans worry that Apple is not paying enough taxes in USA. Thet seem to be disappearing somewhere in South China Sea according to Felix Salmon:
"When Apple ships product from its factories in China to its stores in Singapore, the stores in Singapore don’t make much if any profit. That’s because somewhere in the South China Sea, ASI takes ownership of that product at a very low cost, before selling it on to Apple Singapore at much higher cost. The hardware never goes anywhere near Ireland, but title to the hardware changes hands, and substantially all of the profit associated with that hardware thereby ends up being taxed at friendly Irish rates, somewhere south of 2%, rather than at whatever the government of Singapore might charge. "

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