A little word on tax avoidance

Salamu

Here is a question…have you ever sat and wondered how much shit multinational companies actually get away with?

Before you all think I am some kind of drug addict freak that sits and smokes the reefer just to think up this shit, it is actually work related research which has brought me to this subject. So it is that point of reference from which I am writing.

Now that we have cleared that up, let’s get back to the tangent from which I started the post. What I am about to tell you is common knowledge to some people. But in my opinion, the demographic of ‘some people’ is far too small. For all the great things the Americans are…. this is a global issue and needs to be exposed to a global audience. To an audience who don’t think the sun shines out of the particular company in question’s arse!

There is an old saying which says that the only things unavoidable in life are death and taxes. Well, it seems that Apple has been able to avoid the latter.

While 2012 proved to be one of the most fascinating years for the technology industry, Apple found that it was faced with one of the most challenging years in the company’s history. Not only did the company have to deal with investor unrest, the company lost its position as the world’s richest company to Exxon Mobil. The company also spent the majority of the year playing second fiddle to Samsung who became the top selling smartphone manufacturer in the world. Added to this, Android overtook Apple as the most popular tablet operating system in the world by sales.

2013 has proved to be just as challenging. The company has just finished answering allegations brought before it by the US Senate that the company is not paying its fair share in terms of taxes. A complex tax system which involves Irish based subsidiaries has been labeled as immoral and bordering on illegal.

The Senate report noted that Apple's Irish subsidiary earned $22-billion in 2011. However, it wound up paying only $10-million in taxes.

"Apple's three primary Irish entities hold 60% of the company's profits but claim to be tax residents nowhere in the world," Arizona Sen. John McCain said, adding that it was "completely outrageous" that Apple has managed to avoid paying taxes at home and abroad.

Apple is still waiting for the fallout from the hearing. But it seems like the clover munching Irish are going to beat them to the punch. The country is finally thinking up plans to reform its tax programs.

The effects of this will be far reaching. A major reason that multinational companies base their subsidiaries in Ireland is because it is considered a tax haven. This has become a major draw card for the country. By implementing laws which eradicate loopholes, the country is closing itself off to potential future business development in the country.

This business development goes far beyond merely setting up a subsidiary in the country, multinational corporations contribute significantly to the Irish economy in terms of skills development and training as well as job creation. It is also not only Apple who will be affected. Other technology companies such as Microsoft, Hewlett-Packard and Facebook all own subsidiaries based in the country.

Despite this….it’s ABOUT FEKING TIME Ireland got its shit together!

We tend to forget that companies are like lemmings. Once they see one company has found a way to avoid paying to Caesar that which is owing to Caesar they are quick to follow suit. The sad part about this is that these companies are American. And while they do contribute to skills development and job creation in Ireland and other parts of the world, the US is going through its own challenges regarding these same topics.

Is it so bad then for the Senate to question Apple regarding this? NO IT ISNT. AGAIN, IT’S ABOUT FEKING TIME that happened as well. So then why are the public SO up in arms about the topic?

You are all very loyal right…sure you are. Let me ask you a question, do you think Apple gives a shit about you on a level other than that dictated by a sale and the after sales service associated thereto? Answer: NO! And Apple proves it every day and has been since 1980. Apple was one of the founding companies of the Double Irish Tax Practice. Don’t you think if Apple cared about the local economy it wouldn’t have already established skills development programs and would have brought back SOME production to the US? SO MUCH FOR BEING PROUDLY AMERICAN.

When oil companies push the limits of environmental practices, tree huggers from Green Peace are all over them like a bad rash. It’s the same with mining companies. And don’t get me started on PETA.

Don’t get me wrong, these companies play an important role in society, but perhaps it’s time to establish a public watchdog group for the technology industry to kick up a fuss whenever technology companies take advantage.

Mei jua daima kuwa kabla yenu, na vivuli nyuma yako!