Apple Avoids Billions in Taxes

[Abe Hoffman]

"With a handful of employees in a small office in Reno, Nevade, Apple has done something central to its corporate strategy: it has avoided millions of dollars in taxes in California and 20 other states."

"By putting an office in Reno to collect and invest the company’s profits, Apple sidesteps state income taxes on some of those gains."

"Apple has also 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."

http://www.nytimes.com/2012/04/29/bu...d-nations.html

[OrangeYankee]

Hmm and they focus on how to stick it to them instead of seeing the elephant in the room that high Corporate Taxes (America is the highest by the way) cause companies to flee. Corporate Taxes do one thing: they are a cost of business and that cost is passed directly to the consumer. That article is very telling and very typical of our mindset sadly.

[Gramps]

Originally Posted by OrangeYankee

Hmm and they focus on how to stick it to them instead of seeing the elephant in the room that high Corporate Taxes (America is the highest by the way) cause companies to flee. Corporate Taxes do one thing: they are a cost of business and that cost is passed directly to the consumer. That article is very telling and very typical of our mindset sadly.

IMO wages are as big if not a bigger factor when companies "flee" to other countries.
Corporate. taxes could be zero and still not be able to compete.

[BigPapaVol]

Originally Posted by Gramps

IMO wages are as big if not a bigger factor when companies "flee" to other countries.
Corporate. taxes could be zero and still not be able to compete.

You're ignoring service companies.

[orangeslice13]

people do it all the time. You don't like the rules and laws of the state you live in? Move.

[burntorangeVOLffle]

Originally Posted by OrangeYankee

Hmm and they focus on how to stick it to them instead of seeing the elephant in the room that high Corporate Taxes (America is the highest by the way) cause companies to flee. Corporate Taxes do one thing: they are a cost of business and that cost is passed directly to the consumer. That article is very telling and very typical of our mindset sadly.

Sounds like they are skirting state taxes not fed.

I was actually coming her to start a thread about Amazon and sales tax. They just settled in Texas and will start collecting it in the state in July.

As a regular Amazon customer I'm against this but I do think the states should get something out these mega online retailers. Amazon already has an unfair advantage when it comes to pricing. Throw in no sales tax and the small local brick and mortar stores can't compete.

And I'm one of those guys that goes to a store and uses my phone to scan barcodes to price check amazon before purchasing.

[95 Vol Alum]

I got an email from Amazon last week stating I owe the state taxes on my purchases from them in 2011. Included a summary of what I spent.

[RespectTradition]

Originally Posted by Abe Hoffman

"With a handful of employees in a small office in Reno, Nevade, Apple has done something central to its corporate strategy: it has avoided millions of dollars in taxes in California and 20 other states."

"By putting an office in Reno to collect and invest the company’s profits, Apple sidesteps state income taxes on some of those gains."

"Apple has also 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."

http://www.nytimes.com/2012/04/29/bu...d-nations.html

Things like this make me glad I own Apple stock.

[burntorangeVOLffle]

Originally Posted by 95 Vol Alum

I got an email from Amazon last week stating I owe the state taxes on my purchases from them in 2011. Included a summary of what I spent.

WTF? What state do you live in? I think of they tried to back tax me I would cease being their customer.

[95 Vol Alum]

Tennessee

Hello from Amazon.com,

Thank you for being a loyal customer of Amazon.com LLC. *We appreciate your business and look forward to continuing to provide you vast selection, low prices, fast delivery and convenience. *

As you may know, Amazon.com LLC is not required to collect sales or use taxes in Tennessee. *However, the state of Tennessee requires us to provide the following notice to you:

You may owe use tax on purchases you made from Amazon.com LLC during the previous calendar year. The amount of tax you may owe is based on the total sales price of the items you purchased during the calendar year unless an exemption exists under state law or you have already paid the tax. A sale is not exempt under state law because it is made through the Internet. The total sales price of purchases you had shipped to Tennessee in 2011 was $252.05. This is the amount that you may include on your Tennessee use tax return to calculate the appropriate use tax owed unless you have already paid the tax.

As purchases from Amazon.com LLC can be made through various sales channels, we have included directly below your breakdown of purchases from the various channels. *

Total sales from Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more $252.05 * * * * **
Total sales from Shoes & Handbags - designer shoes, handbags, jewelry, watches, and fashion accessories | endless.com $0.00 * * * * *****
Total sales from MYHABIT Sign In $0.00 * * * * * * ***
Total sales from AmazonWireless: Cell Phones, Cell Phone Plans, and Accessories $0.00 *****
Total sales from AmazonSupply.com: The Store for Business & Industry $0.00 ***

In addition, the state of Tennessee requires us to provide you with the following link that you can use to get more information and pay any taxes due:

Use Tax Page: https://apps.tn.gov/usetax
Please note the following:

• While Amazon.com LLC does not report this information directly to the state of Tennessee we are required to provide this information to you based on Tennessee Code T.C.A. § 67-6-5 (f)(3) signed into law March 23, 2012.
• This notification has been sent to all customers that had purchases delivered to Tennessee. If you are not a resident of Tennessee, the most common reason for receiving this notification is that you may have sent a gift to a recipient in the state.

For more information you may also view our Tennessee Use Tax Notification Page at:
Amazon.com Help: Tennessee Use Tax Notifications

Sincerely,
Customer Service
Amazon.com

[OrangeYankee]

Ya Tennessee made them not only collect taxes but they have to actually bill you for them... That part is kinda crappy IMHO

And I understand that wages are a big factor but argue if we eliminate much of the red tape of taxes and regulations we could be a little more lucrative...

[davethevol]

Originally Posted by 95 Vol Alum

• While Amazon.com LLC does not report this information directly to the state of Tennessee we are required to provide this information to you based on Tennessee Code T.C.A. § 67-6-5 (f)(3) signed into law March 23, 2012.

I wonder if Amazon is trying to tick people off, because if it was signed into law in 2012, then people wouldn't owe back taxes from 2011.

[RespectTradition]

Originally Posted by davethevol

I wonder if Amazon is trying to tick people off, because if it was signed into law in 2012, then people wouldn't owe back taxes from 2011.

The law requiring the use tax was passed a couple of years ago, iirc.

The new law just requires online vendors to notify their customers if the customer qualifies to pay.

IOW, you may have owed it all along, only now they have to let you know about it.

[95 Vol Alum]

Originally Posted by davethevol

I wonder if Amazon is trying to tick people off, because if it was signed into law in 2012, then people wouldn't owe back taxes from 2011.

I believe that the law requiring you to pay taxes on this stuff goes back to 2009. The law passed in 2012 requires Amazon to inform you.

[davethevol]

Weird. Oh well, I still wouldn't pay it if I wasn't charged for it at the time.