The title I chose is triggered by the lack of concern shown by computer scientists when public disclosures that companies like Apple, Google, HP own pay amazingly low taxes. These companies are derided in the press [look here for references]. The critiques provide little background, and often just repeat assertions that it’s all perfectly legal. Why? Corporate taxes are levied on reported US income, and their income is a share of the sales of software and devices incorporating software. That share can be greatly reduced by showing that the rights to the intellectual property (IP), embodied in the products, are held offshore. All multinational computer enterprises can and actually do avoid much taxation by having transferred a large fraction of the rights to their IP to shell companies located in taxhavens, typically subsidiaries of their offshore operations. The true value of such transfers is hard to assess, especially if the IP transfers are made before the products are offered for sale.
To continue reading visit http://wp.sigmod.org/?p=939.
Gio Wiederhold is the featured blogger at the SIGMOD blog.
The title of Gio's post is "Observation: CSers do not value themselves, nor the results of their work?". Read more at the SIGMOD blog (http://wp.sigmod.org/?p=939).