Why should Apple pay US taxes?
APPLE’S results are out and they’ve had another giganticly stonking quarter. But there’s something I do wonder about. There’s a campaign in the US to make companies pay US corporation tax: at the moment, if a US company makes money offshore and doesn’t bring it into the US then it doesn’t pay tax on those profits.
We’ve had a similar argument here over Vodafone. That was all about whether a Luxembourg part of Vodafone should pay UK tax on the profits it made selling phones in Germany to Germans.
But 64% of Apple’s sales are outside the US. And as we know, all of their manufacturing is in China. And, as the results are telling us, China itself is their fastest growing market for sales.
So, profits made on making something in China and selling it in the UK: or on making something in China and selling it in China. Why should they be taxed in the US?