Companies in the United States are always going through changes and they are one of the major highlights of discussion for people like Joseph Stiglitz, the famed US economist. Political leaders and CEOs in Davos are consistently sharing insights on the companies that are more than just profit-making machines. Companies should now focus on their employees, suppliers, communities and more. However, Apple became the center of attention and came under harsh criticism for failing to pay the fair share of taxes. Let's dive in to see some more details on the matter.
Apple's Tax Practices Being Criticized at Davos
As mentioned earlier, Joseph Stiglitz stated that Apple is responsible as a company for not being able to give the required taxes. He says that the company has not paid its fair share of prices because much of its profits are left in Ireland.
“If you aren’t contributing by paying your fair share of taxes, you aren’t corporately responsible. Some companies get a lot of attention, like Apple. You have to ask: are they sincere?”
The companies should contribute more towards the communities as per Chuck Robbins, even if the stakes are not connected to the company. Stiglitz further states that in order to become a good citizen you first have to pay taxes which Apple has been quite accused of in the past. This includes the company using Donald Trump's tax holiday which adds to save billions of US dollars. Tim Cook also publicly stated earlier this week that:
"I think logically everybody knows it needs to be rehauled, I would certainly be the last person to say that the current system or the past system was the perfect system. I'm hopeful and optimistic that they (the OECD) will find something,"
In 2014 it was argued by the EU that Apple's tax arrangement with Ireland was not quite fair. This made the EU ordered Ireland to collect 14.5 billion from Apple in the form of taxes. While both parties are currently appealing, the tax reforms do pose a potential threat if you're a company as big as Apple.
There will be more to the story, so be sure to stay tuned in for more. This is all for now, folks. What are your thoughts on the subject? Do you think Joseph Stiglitz is right about Apple? Let us know in the comments.
News Source: 9to5mac