Apple accused of avoiding paying UK $700 million in taxes

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gatorguy

Had this been in the US it would have been very similar to Microsoft's multi-$Billion US tax problem stemming from transfer pricing activities. For such transactions to be legal they have to be set up as tho they were negotiated at arms'length, what the exchange transaction would be in a free market.

Instead, all the named companies likely do the same thing, setting variable IP licensing rates applied in different markets for no purpose other than removing profit from a sale occurring in a higher tax location and moving it to a low-tax one, which in the US is NOT legal tho apparently difficult to catch.

Bringing this closer to home, a LOT of small US companies would love to claim the same kind of tax benefits, the value from a sale transferred to a low or no-tax locale instead of the state where the product/service sale occurred. We small fry can't do that. Rich get richer and all that, 'ya know?

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