Google, Apple and Microsoft pay minimum taxes outside United States

Google, Apple and Microsoft are regarded as the most popular companies or amongst the most successful companies due to their higher income, higher profits and higher stock market value. They have the best technicians and they also
have the best accountants.

Google, Apple and Microsoft save billions of dollars a year to pay their taxes through fiscal engineering manoeuvres allowing minimal tax upon the benefits achieved outside United States.

At the end of last week, Google reported its fiscal 2011 annual report on Exchange Commission of United States (the SEC). Google, for example, achieved some 7,600 million dollars of gross profit abroad, well above the 4,700 million
achieved in their own country. However, while the company spends an income tax of $ 2.341 million at home, abroad they only paid 248 million abroad.

Google and Apple have adopted extreme tactics to bill their foreign sales from countries with low taxation. Virtually all the benefit of overseas operations was achieved by an Irish subsidiary," the company admitted, after releasing
their annual report recently.

"We have an obligation to our shareholders to establish an efficient tax structure and our structure is consistent with current tax rules in all countries where we operate," A Google spokesman was quoted as saying.

The dual goes on here, as Google not only takes advantage of invoices from Ireland , but Irish law that allows a way to transfer the benefits to companies abroad, escaping even the 12.5% ??rate of Irish corporation.

This type of scheme has aroused suspicion by the authorities. The SEC demanded an explanation from Google on the level of taxes that support inside and outside the United States and its tax returns are being investigated in various
countries including USA, France or Spain, some inquiries that the company considers routine.

With these and other financial engineering manoeuvres, Google pays little more than 3% tax on profits outside the United States, Apple, only 2.5%, and Microsoft, 8%, according to the annual reports of fiscal year 2011, registered
with the SEC.

The stock of foreign funds in the U.S. companies grows steadily to exceed a trillion dollars mark. At the end of last year, Apple’s subsidiaries abroad had accumulated 54,300 million in cash and securities, Microsoft treasured
$ 45,000 million and Google had 21,200 million.

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Posted by Farasat Ali on Jan 30 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry