Apple Company Case Study Tax Management

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Introduction
Life is about planning. We all work to make money to make life worthwhile and as comfortable as we can. Having a winning attitude and efficient preparation is the key to making it in life. To live life at one point or another, we may own a business. Lest we forget, successfully operating a business is a task. You have to pay wages, manage stock and most importantly earn income. You also have to accomplish legal commitments such as paying taxes and at the same time keeping the business feasible. A small juggle on the obligations listed above may make the business run at losses, attract fines or worse still call it quits. Therefore, it is essential for all businessmen and women to examine the following case scenario of the Apple …show more content…

A common adage among businesses is that: “The only sure things in the life of a business are death and taxes”. What does this mean? It means that if a business will not efficiently manage its taxes requirement it might eventually wind up voluntarily or involuntarily. Despite all the tax obligations a business should not despair. As long as it is aware of the areas in the business normally taxed, tax management is an easy task.
The Apple company is one of the largest taxpayers in the United States and has defined a way of always being up to date with the taxes. In the US any profits realized from a company’s branch in Overseas goes untaxed. Incidentally, the Apple company has several affiliates in various countries for which their income, does not attract taxes. Nevertheless, this does not deter it from paying taxes as it should. Apple is always making efforts to expand overseas thus licensing fee automatically applies. Licensee fee is charged on yearly, monthly or weekly basis. Therefore, it is crucial that its financial analysts stay up to date with it. Failure to pay the fee attracts mandatory penalties which may eventually lead to the closure of the …show more content…

What does it mean for Apple? It simply means that its international operations are multifaceted as it has to consider diverse political, cultural and economic factors of each of these countries. Operating in the US and vast differences mark all the other continents. It is said that when you go to Rome do as Romans do; therefore, Apple has designed operation strategies to perfectly suit its area of operation. For example, in the Indian culture, a manager can’t confront his elder who in a business scenario is his junior. So, if any work has been done poorly, then the manager has to find solutions to deal with it without going beyond their cultural provisions. In some countries, you cannot negotiate a deal without first handing a gift to your counterparts. It is deemed as respect and a friendlier way of doing business. On the other hand, giving a gift before or after a negotiation in the US you might be sued for corruption. It is interpreted as a move to bribe your counterparts to influence their decisions to your favor on the matter at hand. It is crystal clear that Apple has done a lot to be able to integrate all these factors especially when it comes to

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