In: Economics
1. How do you feel about Apple's tax strategies from both a moral and business perspective? Explain fully your point of view.
2. Discuss who benefits from the tax strategy: all the
stakeholders benefit or just the shareholders?
3. Discuss fully why you believe their tax strategies are either
ethical or unethical and legal or illegal?
4. Classify the Apple tax strategies as one of the following and explain fully your point of view.
Ethical and Illegal
Ethical, but Illegal
Unethical, but Legal
Unethical and Illegal.
1) Aplle tax stratergy is moral because he is paying the taxes Ireland as it is having its company there also where it claims that the 2/3 of its profits are from Ireland. It is moral becuase apple is the one of the largest revenue companies in the world where due to US high corporate tax apple has to pay more amount due to which it has loose revenue thus it is paying Ireland the same taxes which is lower than US by 3 times. It is trying to safeguard its revenue where it share holders and thousands of employees are working. Due to its revenue it will able to create a better living for its employess who inturn pays taxes to the Government.
2) Due to this stratergy it is benefitting all the share holders as the revenue is distributed in the terms of their investment.
3) This stratergy is full unethical because it trying to evade taxes of the Government so that it can keep more revenue and pay less taxes. So apples stratergy is purely unethical according to Government terms because it is not paying the tax amount by evading it my illegal terms.
4) Unethical but legal.
Becuase it is showing the taxes that its profits from other countries and paying taxes in other country it is legal , But it is unethical as it trying to manipulate by showing false statements as its profits are mostly from a country from less tax so that that it can evade tax.