How Apple escape charges billion
Like many other IT companies, Apple has managed to avoid paying taxes in the United States billions of dollars.
Apple headquarters is in Cupertino, California, but by locating an office in Reno, Nevada, in any 320 miles away, to collect and invest the company's profits, the company avoid paying income tax, writes New York Times.
The fee for companies operated in California is 8.84%, while that of Nevada is 0.
Setting up an office in Reno is just one of many legal ways that Apple uses to reduce taxes worth billions of dollars each year.
The company also has several subsidiaries in countries where fees are lower, such as Ireland, the Netherlands and Luxembourg.
Almost every large corporation is trying to minimize costs. For Apple, the amounts saved are the greater, the more profit is huge. Analysts say it could rise to 45.6 billion dollars in 2012, a record among American companies.
Apple is an example of technology giants that have profited from tax legislation, intended for industrial era, which, however, are unsuitable for the digital economy such as the present one.
Some profits from companies like Apple, Google, Amazon, Hewlett-Packard and Microsoft derive not from physical goods but from royalties on intellectual property, patents on software that is used by devices. In other cases, products are digital, and music that can be downloaded from online stores.
It is much easier for business to royalties and digital products to move profits in countries with low levels of taxation, except for a grocery or a car manufacturer, for example. A downloadable application, unlike a car, can be sold anywhere.
Without such tactics acetate, Apple would have had to pay in 2011, charges totaling $ 2.4 billion just in the United States, according to a study by the American economist Martin Sullivan.
But the company paid taxes $ 3.3 billion worldwide, according to which a profit of 34.3 billion dollars.
Apple surpassed Exxon oil producer and has become the most valuable company in the USA, in the context of very high volatility in the capital markets in recent sessions.
Californian company's market value reached 341.5 billion dollars, slightly above that of Exxon, which is 341.4 billion USD, according to The New York Post.
But Exxon has annual revenues of more than four times higher than those of Apple, analysts assessing the situation will not last long.
In 2010, Exxon had revenues of 383 billion dollars to 65 billion doll