Phil Hearse explains how the world’s richest company rips off workers and governments worldwide
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| Apple headquarters in Cupertino, California |
The ruling by EU competition commissioner Margarethe Vestager that Apple should pay the Irish government €13.2 bn, because the derisory 2% tax charged on Apple profits was ‘unfair’ to other companies, reveals just a tiny corner of the tax, labour and political practices of the world’s most profitable company. Apple practice is the gold standard of multinational super-exploitation that modern neoliberal corporations aspire to. How Apple functions is closely mirrored by the practices of transnational corporations like Google, McDonalds, Amazon, Starbucks, Fiat Chrysler and many others.
Critics of Vestager – like Apple boss Tim Cook, Ryanair supremo Michael O’Leary and former EU competition commissioner Neelie Kroes (who now works for tax evader Uber) – say she is wrong because the Irish government should be able to determine its own tax rates. The main point however is that Apple was able to aggregate all its profits in Europe, Asia and Africa – most of the world outside the US – in its Ireland subsidiary to benefit from ultra-low tax rates. The Irish government was a co-conspirator in a worldwide scam, ripping off governments and citizens internationally.