All posts from Retirely
Retirely in The things you own end up owning you,

Nobel economist Joseph Stiglitz calls Apple scheme to park corporate cash in Ireland an obvious fraud. Innovative, yes, insanely great, perhaps, but still a fraud

“Our current tax system encourages companies to keep their money abroad, opens up a vast loophole through what is called the transfer-pricing system that allows them not only to keep their money abroad but, effectively, to escape taxation,” Stiglitz, who advises Hillary Clinton’s presidential campaign, said in a Bloomberg Television interview with Tom Keene.

Left wing economist whines that corporations try to avoid our absurdly high corporate tax rates? Shocking! TBF, they’re avoiding a LOT of other countries’ corporate tax rates. The current scheme enables them to get the lowest possible rate. So, it’s not like they’re saying, “you know what? We could park our cash in Ireland and pay the lowest rate, but we really like Belize.* So lets park it there.” Cook also advocated (publicly, at least, who knows what they’re lobbyists are saying) that the US government should close that loophole. For one thing, it might make it easier to repatriate that cash, or at least keep more here so they can use it more easily.

* first foreign-sounding country that popped into my head

I think calling it fraud is way too strong of a word, but it doesn’t seem right. It is however a multinational corporation who can afford the best lawyers in the world, so of course their money will follow the path of least resistance and lowest taxation. I’m guessing everything they do is perfectly legal, even though it might not seem right to those of us who don’t know tax law. Then again, maybe it’s fraud.

In Senate testimony in 2013, Apple Chief Executive Officer Tim Cook advocated a change to the corporate tax code which would “eliminate all corporate tax expenditures, lower corporate income-tax rates and implement a reasonable tax on foreign earnings that allows the free flow of capital back to the U.S.,” adding that such legislation would increase Apple’s U.S. taxes.