Bidness Etc - Apple Inc (NASDAQ:AAPL) cannot escape taxes

Apple does not want to reveal its financial structure to Australian tax officials.

Tax is extremely important to boost any economy. It is the thing that allows governments to carry out an efficient system with ease. The industry giants who are generating a substantial amount of revenues are an asset for any nation contributing positively to the economy. Australia is also one of those countries that wishes to avail this opportunity and will not let these companies escape law so easily.

According to the Australian Tax Office that notified recently that the top industry giants that include the three companies are being scrutinized at this point of time for their tax payment mechanism reports Reuters.

The company organized public inquiries for which Apple Inc.’s executive Tony King who deals with operations overseas that includes Australia and New Zealand was brought in front of the court of law.

All these three companies however refused that they are manipulating their profits or in any way avoiding escaping taxes. However, if they consider themselves to be so pure and free from flaws then three companies which include Google Inc., Microsoft Corp., and Apple Inc. have actually refused to present their financial structures to the officials.

“Double Irish” is considered to be one of the most prominent loopholes in terms of taxes. This actually allows firms that are operational in Ireland to streamline revenues to alternate Irish subsidiaries. This results in tax residency in regions which do not take any taxes like Cayman Islands.

For instance in Ireland, only those firms that are owned and controlled by Irish authorities are barred from taxes and termed as tax residents. However, Apple Inc (NASDAQ:AAPL) Operations International is not owned and managed in Ireland but is not incorporated there.

However, the finance minister of Ireland has decided to raise the bar now where new firms will not be granting Double Irish policy. So now big companies like Apple and Google need to come up with a counter strategy according to which they have to find another region which is easy on taxes.

The government of such regions is taking a fairly wise step to stop granting favors to these companies since the trio has a portfolio that boasts of skyrocketing revenues. It is their role as a company to help sustain the economy.
It is natural for the Australian government to take precautionary measures since these companies do not really have a good image when it comes to paying taxes.

AAPL and GOOG should realize the potential they have and reveal their financial structures in order to avoid unnecessary allegations.