It amazes me how people can blatantly lie, and continue to lie, when everyone else knows the truth. There is a Senate inquiry in Australia into big companies, mainly tech giants, avoiding tax that is owed to this country. Mr King, the head of Apple Australia strongly denies that the company is reducing its tax payments through questionable methods. Fair "crack in the door mate" we all know what is really going on. Is Ireland involved in these methods?
Apple and Google are the major companies targeted by the inquiry. Britain is planning to regulate to make them pay what is due there. Other countries are watching to see what Britain does. Of course, the easiest way to get money out of the tech megaliths is to introduce a revenue tax irrespective of profit, because it is profit that is being skimmed off subsidiaries by head office for non-existent services.
The Australian Tax Office wants its pound of flesh from internationals as it does from locals. Last year Apple paid $80m in tax from profit of $250m. Revenue was $6 billion. While this is a tax rate of 32 per cent, the profit margin of only 4.17 percent is highly suspect. Apple charges a fixed rate of 30 per cent on all app revenue in its App Store. Furthermore, it has huge income from sales of its own merchandise for which the profit margin is not widely known.
Mr King said that Apple would willingly enter into an agreement with the ATO. By saying this he clearly believes that he can choose not to follow Australian law. Apple's tax rate of 32 per cent seems reasonable at first glance when compared to Google Australia's rate of 15 percent. However, Google's profit margin of 13 per cent is more realistic.
Lastly, Mr King of Apple said that Australian app developers had made a fortune out of new apps. He fails to mention the gargantuan amount made by Apple from these. The guaranteed 30 per cent on all downloads is a money grab by any definition considering Apple has set this rate itself and it can easily raise it at any time, even for apps already available.
✴ Technology by Ty Buchanan ✴