Sunday, September 04, 2016

Tax evasions by multinational companies

European Commission on Competition lately handed Apple a breathtaking demand for €13 billion (US$14.5 billion) to be paid to Ireland on the grounds that Dublin illegally favoured Apple with a tax regime that amounted toa competition-distorting subsidy.

Will Apple have any problem in paying it? Certainly no. Apple has a cash reserve of US$232 billion, of which US$214 billion are kept in foreign accounts. Apple's average profit per month in 2015 was about US$4.45 billion.

Why do companies like Apple wants to pay lower tax? Because they are going to reward their workers, employees and contractors better, such as those who worked extremely long hour in Foxconn's assembly plants?

Certainly no. So where does the monies go? Maybe it is good to ask Apple how much are they paying their CEOs and their top bosses.

I do not go against the business community, I am not a Communist because I believe the business community as well as the capitalists have their roles to play to move the economy forward. But as a global citizen, we must stand up in solidarity to go against them if they are evading their fair share of their taxes while at the same time paying peanuts to their workers and their contractors/workers. In another words, they are exporting poverty and slavery to the people of third world countries and importing huge profit out of exploitation into their own wallets.

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