via The Economist: Apple’s bond issue – Pity the taxpayer
This is an interesting piece on “creative financing” by big multinational companies. Apple issued recently corporate bonds (debt) worth 17 billion dollars while sitting on a cash pile of 145 billion dollars. Why? Well, what looks like a contradiction makes perfect sense and is common practice. It is an effective way to dodge the taxman, subsidized by ordinary taxpayers. It is a good read if you can bear it.
Ireland’s very favourable corporate tax rate will be up for discussion sooner rather than later. David McWilliams argues rightly that the world has changed since the financial crisis struck. Funds are tide everywhere. A public strangled by austerity and cut-backs demands that the burden is shared more evenly. This includes explicitly also giant multinationals. The pressure on governments that facilitate tax avoidance practices, such as the Irish, will mount.
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via Corporation tax sleight of hand will turn us into world pariahs.
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