Do you know, Every single second apple generates $1444 of profit which is more any its competitors includes companies such as Alphabet, Microsoft and Facebook combined. Whereas, such as the huge amount of countable $285 billions of revenue makes it more like country, than the company. Not to mention, Anyone would kill for pockets so deep.
Therefore, Apple is wary even after considering most companies beg not to pay a tax instead countries beg not to tax apple. Today we are going to share apple strange story about Apple finances explains how apple got so wealthy and where is the problem and what they will going to buy next.
Apple Money Problem?
Every company pay taxes to there country in which their money is generated from such as a CPU be made and manufactured in Nepal. Still, if it sold in India, that’s where it pays taxes and because these taxes depends and vary by country, So do the costs of products. The best example is iPhone X is $1000 in America but $1368 in India and $1455 in Hungary. Most likely, if it were not for import taxes, it is cheaper to fly to the United State (US), buy an iPhone and come back home.
Apple pay taxes where profit is made*
There is an exception to every rule and exception is always in America suggesting the only country that taxes based on citizenship which means a US Citizen working and living in abroad still owes taxes back to United State (US). As they as “Once an American, always an American!”
Furthermore, you could renounce your citizenship, but you’d be taxed for that too and for American Companies includes Apple paying the highest tax in the world on profit made anywhere across the globe. Which means if you change your country doesn’t mean you didn’t have to pay taxes back to America.
At this point, When apple pays tax overseas, America itself subtracts the amount from its tax rate. Here every American tech giants like Apple, Google, Facebook and other major companies re-think, and they make another profitable step. Whereas, they keep their money out of America now by creating their subsidiary which is a legally different but the only difference says all “Apple Foreign bank company” account and these are located in countries like Ireland and jersey for very generous tax code.
Ireland’s economy not run by tax shelter but because of code like this, They might lose in taxes but get jobs in return through companies like Apple. So, Wherever the European Union ask for dues and saying not too fair a deal, they are passing up on 5% of their entire GDP (Gross domestic product). You got it right, but you might be stuck thinking about the other 30% revenue Apple generate in United State (US)?
Here comes an interesting fact, if you want to pay fewer taxes, then you have to make less money at least on paper. In contrast, All the apple products depend on patents, unlike places, people or things patents have no precise value.
Which means Apple find out a handy way to move money. Then, Apple gives its patents to the Irish subsidiary who then rent them back to apple for a fee. So, When apple makes money in us, technically they didn’t make any profit because it was own by Ireland. This is how Apple actually makes profit by escaping its country whether it’s made in Spain or marine and technically Ireland taxes that money. This escape system or loophole makes it nearly tax-free.
Apple Money Problem?
All of this is 100% legal and 100% common, but Apple makes so much more money that it unusual position all the money is frozen and work like a World’s largest bank. In this scenario, such as to pay American bills, apple takes American loans. They can’t keep up with the rate of how fast it was growing. On the other hand, there is no singular apple the CEOs of the CEO are shareholders, and When someone buys a portion of the Apple he does so in the hope of earning more money tomorrow, then he paid initially.
For General people, money in a bank account is the money it can use, but to a shareholder, all the money means nothing if it was watching grass grow. When the US lower its corporate tax apple is going to bring back their money, and they will boost revenue through spending in research future products, acquire small companies and buy back shares.
Why it won’t buy Tech-Giant!
There were a lot of articles suggesting Apple should buy Tech-Giants like Tesla, Activision and Netflix. These all things make sense for the investigators because Apple currently depends on one single product Apple iPhone as they start adding services and hardware to their catalogue, but these arguments is another. If Microsoft and Google acquire vise-versa, then Apple rarely stays in sleeping.
Apple isn’t bad with money?
According to reports, Microsoft bought LinkedIn for 26 Billion, and Apple bought Beats for 3 Billion, which is 8x times than apple. Apple only buys the talents and technologies and never trying to make quick money. They have a strategy as when apple needs Touch ID, they bought Authentec, and when it needs Voice assistance, they bought Siri, and When it needs Steve Jobs, they bought NeXT.
If Apple buys Activision, Tesla or Netfix, it suggested that Apple stop being Apple. We would like to know your thoughts on the same. Thanks for being with us. We would like to know your valuable opinion and feedback if there is any query share with us in the comment section down below.
