The mayor beliefs that the tech giant is not sharing the profits with the region justly
Barry Chang, the mayor of Cupertino is disgruntled with Silicon Valley tech giant, Apple Inc. In an interview with The Guardian, Chang stormed at the world’s most valuable company and accused it of tax evasion and concealing its money in the accounts maintained overseas. He said that such practices of the tech titan are weakening Cupertino. He taunted the company saying, “Apple is not willing to pay a dime.”
Chang argued that since the company is making exorbitant profits then they should “share our responsibility for our city, but they won’t.” Currently, while being in compliance with the tax system, Apple Inc. pays at a tax rate of about 2.3%, at this rate, from 2012 to 2013, the tech behemoth has paid mere $9.2 million while generating close to $181 million offshore. Mr. Chang cited that the company ought to pay far more and that he tried compelling the tech giant to pay around $100 million to Cupertino for the purpose of infrastructure projects. However, the city council voted against the motion.
Chang added that he is determined and it is less likely that he’d back out. On the other hand, the Cupertino, Calif. firm has stated that it has been paying the Cupertino tens of millions of dollars in the form of property taxes and additional sales; also, while part of the tax charged to the company relates to the construction of the new campus. The campus is likely to generate billions for the local businesses.
In the past as well, Apple Chief Executive, Tim Cook has assured that the company has always maintained law compliance. Currently, the tax system followed in U.S. allows the organizations for such practices –also referred as “double Irish.” Through the initiative, the companies may set up their headquarters at low-tax regions like Ireland and subsequently disperse the profits to subsidiaries in regions like Bermuda or Cayman Islands. According to Citizens for Tax Justice –a non-profit research group, if the tech titan’s financials are adjusted on the basis of the money held by the company overseas then the iPhone maker would, in taxes, owe close to $59.2 billion.
Last December, on similar matter, Mr. Cook expressed that the criticism against Apple has political roots. He cited that the country should work on framing policies which could allow companies to bring in the profits they earned overseas conveniently to their dwelling countries without the payment of exorbitant –30% to 40% –corporate tax rate.
Apple’s stock, at the market which traded on Thursday, closed at a price of $93.24 by falling 0.38%.The 52 week range of the stock is $92 to $133.