If Apple paid their taxes...

antrobus

michaels wrote: »

I would find it hard to argue that Apple make much profit on their UK activities, most of the profit comes from their marketing (and technical innovation) which are I guess US functions.

Well, I think the issue is that the UK accounts for about 10% of Apple's total sales. So when Apple declares a profit of £12 bn or so, there is a tendency for some people to think that 10% of that profit is somehow 'ours', that we should be able to tax it, and the fact that we aren't taxing it is evidence that Apple is up to some kind of quasi-legal skullduggery.

Of course, the same principle would apply to any company that sold imported products that are manufactured and designed abroad. Such as BMW. Or Samsung. Or, well, practically any company selling any kind of electronic device you could think of.

I'm not sure why Apple is so special in this regard.

Mallotum_X

Long term this will just lead to increased VAT and lower Corporation tax. The tax all gets paid by consumers anyway, but it is harder to avoid VAT (especially if they work on the various loopholes).

Thrugelmir

Graham_Devon wrote: »

How much better off would we be in this country? By we, I mean the treasury?

Costs just $5 to assemble an IPhone in China. Perhaps the workers out there deserve better as well.

The EU are after the US corporations. So the future may well be different.

shortchanged_2

Thrugelmir wrote: »

Costs just $5 to assemble an IPhone in China. Perhaps the workers out there deserve better as well.

The EU are after the US corporations. So the future may well be different.

That's a healthy margin.

TheBlueHorse

Well done to Apple and well done to the clever advisers who advise them on this stuff. If what they do is legal, well done to them. We'd all do the same if it was worth it/ we could afford it.

Blame the Govts and their useless public sectors who can't get their backsides into gear to deal with these things.

Soon, they'll say "we have global companies and we need global governance and global rules" and then the new world order conspiracists will come out in force.

I don't buy Apple products for one reason - no back button. Android is much better.

Thrugelmir

shortchanged wrote: »

That's a healthy margin.

Gross margin on an IPhone is over 50%.

Some people are suckers for brand names.

antrobus

Thrugelmir wrote: »

Costs just $5 to assemble an IPhone in China. ...

That's just the labour cost of assembly, apparently. The total cost of assembly would be greater than that. And the parts cost $190.

http://www.marketplace.org/topics/business/ive-always-wondered/how-much-would-all-american-iphone-cost

Thrugelmir

antrobus wrote: »

That's just the labour cost of assembly, apparently. The total cost of assembly would be greater than that. And the parts cost $190.

I know. It's the conditions people work in and hours worked. More akin to Lancashire Cotton mills of the 18th century.

theEnd

Controversial, but why do companies pay tax?

The tax should be taken from people when they take the profit or bonus or wage.

shortchanged_2

antrobus wrote: »

That's just the labour cost of assembly, apparently. The total cost of assembly would be greater than that. And the parts cost $190.

http://www.marketplace.org/topics/business/ive-always-wondered/how-much-would-all-american-iphone-cost

Yes and they sell in the UK for £600, that's over $900. Even accounting for research and marketing etc that is still a healthy margin.