Apple, the world’s most profitable technology company, doesn’t design iPhones here. It doesn’t run AppleCare customer service from this city. And it doesn’t manufacture MacBooks or iPads anywhere nearby.
Yet, with a handful of employees in a small office here in Reno, Apple has done something central to its corporate strategy: it has avoided millions of dollars in taxes in California and 20 other states. Apple’s headquarters are in Cupertino, Calif. By putting an office in Reno, just 200 miles away, to collect and invest the company’s profits, Apple sidesteps state income taxes on some of those gains.
Apple’s strategy: charge high prices for products made outside the United States where wages are poor and taxes are low and use any means necessary to avoid meeting its obligations as a member of American society.
Setting up an office in Reno is just one of many legal methods Apple uses to reduce its worldwide tax bill by billions of dollars each year. As it has in Nevada, Apple has created subsidiaries in low-tax places like Ireland, the Netherlands, Luxembourg and the British Virgin Islands — some little more than a letterbox or an anonymous office — that help cut the taxes it pays around the world.
Apple may be the sort of company that follows the law and uses its many loopholes to its advantage, but legality doesn’t equal morality and Apple simply has no interest in sharing its part of the culture’s burdens. And that makes it evil.
- How Apple Sidesteps Billions in Taxes (staradvertiser.com)
- The NYT Investigates How Apple Sidesteps Billions In Taxes (macstories.net)
- How Apple Sidesteps Billions in Taxes (nytimes.com)
- Sneaky Tax Tactics Save Apple Billions of Dollars [Apple] (gizmodo.com)