This week, United States Senate held hearings to investigate how Apple, Inc. managed to shelter tens of billions of dollars in profits from the IRS, and pay only a relatively small amount in US taxes. (According to unconfirmed reports, the Senate hearing was sponsored by Google, Inc.) Since most Senators who had participated in the inquiry did not actually consider Apple’s tax-avoidance schemes illegal, it appears that the real purpose of the inquiry was not to punish Apple, but to learn from them. So, here are 10 ways how Apple managed to avoid billions of dollars in taxes.
1) Apple claimed 50 million iPhone and iPad users as dependents.
2) Each time after sending a tax return to the IRS, three days later Apple would promise to the IRS that they will release a better and newer version of their tax return in just a few months.
3) Apple’s accountants used little-known trick: if you hold Apple’s tax return in a certain way, it looks like there are no taxes due.
4) After claiming $100 billion in research and development costs to design the iPhone, the company claimed another $100 billion in R&D cost for designing the iPhone that would be black.
5) Also, the company deducted $10 billion in R&D expenses that were spent on the research aimed to find the most effective ways to avoid taxes.
6) According to the official explanation, when Steve Jobs died, he took the company’s pin code for the bank account with him to his grave.
7) Apple Corporation deducted the Green Pigs’ structures destroyed in the iPhone’s Angry Birds games as a real estate property loss.
8) Citing its allegiance to the cause of low taxes as proof , Apple pretended to be a Tea Party group to get a designation as a tax-exempt organization.
9) Claimed adoption credits on 500,000 Chinese workers who assemble iPhones and iPads. (Also, once the workers became adopted, Apple no longer had to pay them an actual salary, and could get away with just giving them a weekly allowance instead).
10) Finally, every time an Apple gadget user makes a swiping motion on their iPad or iPhone, 1 cent of Apple’s profits gets transferred into an offshore tax haven. Well, don’t act so shocked now: if you had read your iPhone’s contract before accepting it, you’d have known that you’d be the one to bear full responsibility for sending the money offshore.
Sent from my Samsung Galaxy SIII