On May 23, 9:06 am, Lloyd <
lloydpars...@me.com> wrote:
>
>
> And it isn't Apple at all, it is all the multi-nationals.
Which is what invokes the broader question of just how should a multi-
national corporation optimize their organizational structure for the
products & services that they provide.
This question only comes about when the inherent costs of operations
in different geographical regions - - which includes the local laws of
the applicable governments - - creates differences which are
significant enough to the company to invoke a reassessment.
For example, if taxes and warranties were set at the same levels
worldwide, there would be no particular cost differentials with which
to respond to.
But they're not uniform, and there's ample examples of various
accomodations for certain types of activity. For example, individual
US citizens can be eligible for the 'Foreign Earned Income Exclusion"
of up to $95,100 per year (2012).
Here's the short form:
http://www.irs.gov/pub/irs-pdf/f2555ez.pdf
Yes, that's a $95K deduction off of individual income, which most
people would probably consider to be a pretty "spectacular"
deduction. Regardless, it has been part of the existing tax code for
years, available to all US citizens, and exists because the US
regulators chose to put it there, which also means that it is expected
to be used. The same basic principle applies to the policies set by
every other country in the world.
And granted, there are some accidental "loopholes" which get
overlooked. but the true accidents are closed pretty promptly: when
one has remained in existance for 10, 20, 30 or more years, it simply
isn't an accidental oversight anymore, but a purposeful exception.
-hh