ttp://www.accountingweb.com/article/maximizing-returns-or-unethical-tax-avoidance/222083
This is a post that reflects on Jacqline Geng’s blog post about Apple’s unethical conduct about avoiding taxation regulations, to see the original article, click here
Apple, a company that owns more than a hundred billion dollars and is well-known either in the U.S domestic market or the globe, is avoiding its obligation of paying the income corporate tax by taking advantage of the law loopholes of the tax regulations of Ireland and America- creating a stateless corporation. Technically, Apple still legally operates its company without either violating the United States’ tax corporation law or that of Ireland’s (utilizing the notorious law loopholes called Double Irish). However, as Apple exempt itself from the responsibility, it is operating against business conscience and ethics,which can create negative impacts on its brand name and reputation.
I agree with Jacquline’s opinion on Apple’s unethical conduct of deliberately avoiding corporation tax. The influence and power Apple has in the competitive market of electronics product industry, United States, and even the globe is enormous, therefore Apple not only has to abide by all the regulations but also keep away from the deeds that would give the public negative impressions and pose damage to the brand’s image. However, the article did not highlight the problems of “Double Irish” (a deception strategy), and other tax loopholes used widely among American enterprises, which indicates that there is an underlying concern that in the future, more companies will utilize this well-knowing, long-existing tax heaven strategy to avoid its social obligation. Therefore, the government ought to devise a better, more complete regulation to fix the failing taxation codes to stop companies from dodging its social responsibility and placing its interest before the social interest before the wellbeing of the society.
Below is the diagram which shows the tax payment that Apple has “reduced” by exploiting the Double Irish loophole strategy.
Works Citied:
Lee Sheppard “How Does Apple Avoid Taxes?” 5/28/2013
http://www.forbes.com/sites/leesheppard/2013/05/28/how-does-apple-avoid-taxes/