Trending December 2023 # Apple Accused Of ‘Poor Tax Conduct’ For Tax Avoidance, Esp On Foreign Earnings # Suggested January 2024 # Top 15 Popular

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Non-profit group Fair Tax has accused Apple of ‘poor tax conduct’ for using aggressive tax avoidance measures to reduce its overall tax rate to 17.1% over the past decade, less than half the official corporate tax rate of 35%…

Corporate tax is levied only on profits, so after all operating expenses and investments have been deducted from total revenue.

To be clear, Apple is not accused of any legal wrong-doing. Unlike tax evasion, tax avoidance is perfectly legal – but does mean there is less money to spend on public services and infrastructure, says Fair Tax.

Tax matters. It helps to fund vital public goods and services and when paid fairly, it ensures a level playing field for businesses large and small.

We want a future where all businesses are proud to pay their fair share of tax [but] profits continue to be shifted to tax havens, especially Bermuda, Ireland, Luxembourg and the Netherlands […]

When multinational corporations abuse their tax responsibilities to society, they weaken the supports that our economies need to work well and create wealth.

Of the six US tech giants accused of not paying their fair share, Apple isn’t ranked as one of the worst offenders. Indeed, it gets the second-best report after Microsoft. Its tax payments do, however, represent a significantly lower percentage of its profits than most businesses, especially on overseas income.

Presents itself as “the world’s largest taxpayer” and it certainly makes the largest tax contribution of the Silicon Six, having paid $93.8bn in income taxes this decade (albeit on profits of $548.7bn and revenue of $1,888.0bn). However, cash tax paid as a percentage of profit over the decade is still a relatively low 17.1%. The trend of low current tax provision in connection with foreign profits continues in 2023, with just $3.9bn booked on $44.3bn of foreign profit, giving a booked current tax rate of just 8.9%.

Amazon is listed as the biggest offender when it comes to poor tax conduct, followed by Google, Netflix, Apple, and Microsoft.

Fair Tax suggests it is in the long-term financial interests of big tech to pay a fair amount of tax, to avoid future financial shocks and damage to their brand image.

The international tide is turning on the acceptability of corporate tax avoidance. The idea of countering the profit-shifting of Big Tech multinationals via the introduction of digital sales taxes has taken root in many countries. Investors need to look afresh at the future impact that this will have on company valuations and income flows. Not least because the OECD is now leading multilateral efforts to address the tax challenges from digitalisation of the economy, and is looking to ensure that profitable multinationals pay tax wherever they have significant consumer-facing activities and generate their profits.

More than 130 countries have agreed on the need for global tax reform, including ensuring that companies pay tax in each of the countries in which they operate.

We are currently awaiting a decision on the appeal by Apple and Ireland against the €13B ($14.5B) tax ruling.

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Difference Between Payroll Tax And Income Tax

Employers must withhold a portion of employees’ pay to pay employment taxes. Two sorts of employment taxes are taken out of an employee’s gross pay.

What is Payroll Tax?

Unemployment insurance and social security contributions are examples of payroll taxes. It’s a tax in which both the company and the employee participate. The FICA (Federal Insurance Contributions Act) levy covers healthcare costs and social security contributions. The retiree’s monthly payout is based on the social security tax the worker contributed throughout their working years. Insurance against joblessness is provided by the Federal Unemployment Tax Act (FUTA), and medical costs are covered by Medicare beginning the year after retirement, regardless of age.

What is Income Tax?

All levels of government impose some form of tax on citizens’ incomes. A municipal income tax is added in certain areas, while others do not. State income taxes and payroll taxes are typically imposed by each state independently. To avoid paying federal income tax, just check the appropriate box on Form W−4. The company withholds a portion of the payment for tax purposes. This tax payment must be made to either the state or federal government. After the government gets its share, the withheld wages are returned to the workers.

Differences: Payroll Tax and Income Tax

The following table highlights how Payroll Tax is different from Income Tax −

Characteristics Payroll Tax Income Tax

Contributors Payroll taxes are split evenly between employers and workers. An employee is responsible for paying the entire income tax.

Consists of Payroll taxes include social security, unemployment, and medical care. Depending on where you reside, you may owe several levels of taxation on your income− some are collected at the state level, others at the federal level, and yet others at a local level (such as a municipal tax that is paid for the locality where you dwell).

Source Wages, or the money an employee earns from his work, are the primary factor used to determine how much money must be withheld for payroll taxes. A person is required to pay taxes on all of their income. It’s possible to send this money once a week, once a month, or even once a day. The income tax is also calculated from income in other ways, such as by renting out a room in their home, investing in the stock market, banking on the interest on their savings, etc.

Nature of Tax Payroll taxes is regressive compared to income taxes since the tax brackets are not adjusted for inflation. Income tax is considered progressive because it grows proportionally with the employee’s compensation, according to a set of income brackets.

Purpose Governments typically rely on income taxes to fund their operations.


While both federal and state taxes have unique characteristics, we can all agree that they both represent a significant portion of the earnings paid to employees. Both taxes are being levied for different reasons, and we need to know how much we’re paying and how it’s being distributed. Paycheck withholding taxes include, among others, federal income tax and state and local payroll taxes.

Compared to the tax rates applied to individuals’ incomes, the payroll tax is a more regressive collection method. This is because payroll taxes are only levied on money coming in, and most payroll taxes have a maximum salary before they kick in.

In general, interest rates are stable over much of the middle−income range, but they decline gradually as one approaches the top end of the income spectrum. Income tax is a type of tax that everyone must pay based on how much money they make each year. If we can identify the distinctions, we can better understand the function of each tax.

Online Tax Filing: The Best Last

Tax day is a procrastinator’s dream. The two-and-a-half months from when you receive your W-2 or 1099 to when you have to file seems like an eternity. But now it’s hit you with the urgency of a house on fire.

See if you can file for free

Even if you don’t qualify for FreeFile, you can use FreeFile Fillable Forms. Accessible from the FreeFile page, these are basically electronic versions of the IRS’ hard copies that you can fill in and file online. Because these don’t provide the question-and-answer prompts that most tax programs do, they’re best suited for people who have experience filing paper tax returns. Fillable Forms do not support state returns.

You may also be able to file for free with a commercial vendor if your tax situation is relatively straightforward. TurboTax, H&R Block, and TaxAct each have free options for filing simple 1040, 1040A, or 1040EZ. State returns cost extra—$20 for TaxAct and $30 for TurboTax and H&R Block. These options offer automatic import of your W-2, accuracy reviews, and answers to common tax questions.

The best of the pay vendors

If you don’t qualify for one of the above options, your best bet is to avail yourself of one of the Big Three paid services: Turbo Tax, H&R Block, and TaxAct. There are less-expensive services than the first two, but they offer little more than what you can get gratis from FreeFile Fillable Forms, and they can’t match the features and polish of the leading packages.

All three vendors offer multiple tiers of their products, with prices increasing with the complexity of your tax situation. If you’ve used one of these vendors before, it’s simplest to stick with them because you’ll be able to import data from last year’s return.


TurboTax’s interview-style wizard points you to the appropriate product for your tax situation.

H&R Block

H&R Block also offers three paid options: Basic ($35), Deluxe for homeowners and investors ($50), and Premium for the self-employed or rental property owners ($80). State returns are an additional $40. All tiers include data import support, plus guidance on deductions, home mortgage interest, and more depending on the package.

H&R Block’s online packages come with plenty of pro support.

Like TurboTax, Block offers a refund bonus program, sweetening the pot if you put some or all of your refund toward the purchase of a gift card from one of more than 40 retailers including Best Buy and Target. Refund receivers using Basic will get 5 percent added to their card amount, while Deluxe and Premium users can look forward to an additional 10 percent.


Historically TaxAct has been the bargain offering of the Big Three, and that’s still the case. Its state-and-federal Ultimate Bundle, which includes e-filing, is an unbeatable deal at $22. Opting for just their Deluxe Federal package will set you back only $13. But what you save in fees, you lose in features.

TaxAct’s interface isn’t fancy, but it will walk you through the tax prep process.

TaxAct’s interface isn’t nearly as streamlined as those of its two biggest competitors. There is a fairly robust library of text and video assistance on a variety of common tax topics, and tax help via phone is available as part of the Ultimate Bundle. But if you’re on a budget and you don’t need a lot of hand-holding, TaxAct may be your best bet.

Mobile filing

A benefit of a tax-prep app like TurboTax’s is being able to snap a photo of your W-2 to import its data.

H&R Block and TaxAct’s mobile offerings are still comparatively limited. The H&R Block 1040EZ Tax App lets you prepare a simple federal and state income tax return, while the H&R Block iPad App allows for more complex returns and lets you move between it and your desktop browser. The same goes for TaxAct’s smartphone app, TaxAct Express, and its tablet app.

Whichever option you choose, don’t put off filing your taxes any longer. The closer you get to tax day, the more procrastinators like you will be flocking to these sites to meet the deadline, potentially creating a logjam. So grab your tax form and your receipts, and get started.

Correction: This article mistakenly stated that tax help by phone is not available with TaxAct. It is available with the TaxAct Ultimate Bundle. PCWorld regrets the error. 

Arizona Solar Tax Credit And Incentives Guide For 2023

More people are looking toward renewable energy solutions, and Arizona is not getting left behind. As the use of solar energy takes center stage, Arizona has also done its best to help in this fight to make renewable energy accessible and affordable for all its residents.  

Solar Power in Arizona 

To encourage residents to choose renewable energy resources, the government provides certain incentives for making the switch to solar power. The US has created a set of solar incentives to reward people who choose to make use of renewable energy solutions.

The Grand Canyon State has its 3 largest utility providers – Arizona Public Service (APS), Tucson Electric Power (TEP), and Salt River Project (SRP) – which all provide a solar export credit at a compensation rate approved by the Arizona Corporation Commission. This system is similar to net metering by allowing you to generate credits on your utility bill for the unused electricity that your solar system generates.

The dollar amount varies by the utility and may change slightly over time but stands at this currently:

Arizona Public Service (APS): Approximately 9.4 cents/kWh

Tucson Electric Power (TEP): Approximately 7.8 cents/kWh

Salt River Project (SRP): Approximately 2.8 cents/kWh

Arizona Solar Incentives and Tax Credits for 2023 Federal Solar Tax Credit

The Federal Tax Credit – also known as the ITC or Residential Clean Energy Credit – is available to homeowners and businesses that install solar PV energy systems. According to the Office of Energy Efficiency and Renewable Energy, the federal tax credit is worth 30% of the cost of installing solar and battery storage systems.

Arizona State Residential Solar Tax Credit

Most Arizona residents are also eligible for the Arizona State Residential Solar Tax Credit which offers 25% of the total system’s cost – up to a maximum of US$ 1000 in total.

People owing less taxes than the credit can roll it over for up to five years. Homeowners will need to have a state tax liability to qualify for this solar tax credit. The solar energy devices that qualify for the Arizona Solar Tax Credit include:

Passive solar building systems

Solar daylighting systems

Solar PV systems

Solar PV phones

Solar PV streetlights

Solar swimming pool and spa heating systems

Solar water heating systems

Energy Equipment Property Tax Exemption

According to the Energy Equipment Property Tax Exemption, your solar panels are eligible for a property tax exemption if the installation increases the value of your home. This means that you may be exempt from paying taxes on that increased value.

To qualify for the property tax exemption, the property owner must provide their county assessor with documentation that can confirm the actual purchase and installation – including the costs of the eligible equipment.

In addition to solar panels, this property tax exemption extends to:

Solar thermal process heaters

Solar pool heaters

Passive solar technology

Solar space heaters

Solar water heaters

Solar thermal electric

Other solar-powered appliances

Solar Equipment Sales Tax Exemption

The state also provides a sales tax exemption for the retail sale of solar energy devices and the installation of solar energy devices by contractors. This exemption does not apply to batteries, controls, and other elements of the setup that are not part of the system.

5 Great Benefits of Home Solar Power in Arizona

Change can be difficult and investing in a new energy source can be even more so. That’s why we’ve taken the liberty of listing the top 5 benefits of making the move to solar power in Arizona:

Solar Savings are Driven by Federal and State Incentives

These incentives are usually tax credits, rebates, or other financial incentives offered by governments, utilities, or other organizations. These help to encourage people to choose sustainable solutions by drastically lowering the costs of installing renewable energy solutions. Additionally, solar incentives can help stimulate the growth of the solar industry, create new jobs, and promote economic growth.

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Increases Your Home’s Value

The use of renewable power increases the value of your home in several ways. Solar panels will dramatically increase the value of your property by lowering the monthly expenses for homeowners and making the property a worthy investment. 

Installed solar panels also make homes look more environmentally friendly and sustainable, which is a great selling point. for higher prices and increase the entire neighborhood’s worth. An area that includes solar panels in its design is more likely to have a higher estate value. 

Reduces Your Monthly Energy Expenses Increased Energy Flexibility with Solar Battery Storage

Choosing a solar generator means you have the flexibility to go wherever you need to go without worrying about a power backup system. Take a break and enjoy outdoor activities while easily keeping your devices and appliances charged and functional wherever you are. Solar-powered battery storage means seamless power – even in a blackout or storm.

Preparation For The Future While Lowering Energy Costs

Generally, the amount that you spend to install and implement a solar-powered energy system will pay for itself in the long run. The Office of Energy Efficiency and Renewable Energy has also confirmed that solar panels take significantly less energy to fabricate than they produce over their lifetime. This means that your move to solar energy will eventually sustain itself and give you peace of mind knowing that your investment was worth it. 

Mango Power Solar Generators: Ideal for Arizona

Mango Power offers sustainable solutions for all your solar power backup needs and the Mango Power E is easily our most impressive portable solar generator. 

 Key Features of the Mango Power E

The Mango Power E has an impressive 3.5 kWh battery capacity. This can also easily be expanded up to a 14kWh capacity with additional units.

The output power ranges between 3000 and 6000W.

The device features multiple charging methods. Easily and quickly charging up to 100% in only 1,5 hours through any of the numerous EV charging stations found around the country. Through grid charging, through efficient solar panel charging, and charging through a generator.

Can be connected to cater to a 240v split phase for heavy-duty appliances.

Makes use of ultra-durable LFP battery cells that charge faster, last longer, and are more reliable than other traditional NCA/NCM battery cells.

Features 16 different output ports and 6 different types of outlets.

A 5-year service life.

Benefits of Using the Mango Power E Solar Generator Provides Effective Emergency Backup Power

Say goodbye to power cuts with the Mango Power E and ensure seamless power even in a blackout. Keep the lights on, devices charging, and your home warm and safe – no grid cuts will affect you with the Mango Power E in your home. 

Portable And Easy To Use

The Mango Power E is also simple to use and even features a convenient Mango Power app that lets you customize your device’s settings from anywhere. 

Cost Efficient and Environmentally Friendly 

The Mango Power E helps you save on utility bills and growing fuel prices. The Mango Power E is also great for the environment. The device provides a 0.79 kg reduction in carbon emissions with every recharge. Equivalent to the amount of carbon captured by 48 trees in a day.

Appreciate the full range of benefits of solar energy solutions with Mango Power while saving money and the planet. 

Choose Mango Power 

Now more than ever, solar power is taking the world by storm. Aside from the environmental impact, solar power has proven to be cost-efficient, flexible, and overall, a better option in the energy solution crisis. With the numerous incentives available to Arizona residents, it’s crucial to get ahead and begin your solar-powered journey today with Mango Power.

Mango Power is your one-stop solution for superior solar-powered generators and equipment. Maintain your home’s backup power supply with Mango Power for products that are catered to save you money, keep your home powered up and protect the environment. Make the right choice for your home and choose Mango Power.

Book Profit As Per Income Tax Act

Definition of Book Profit

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ABC Bank invested in the Bonds of Crayon International on 02 Jan 2023. The Bonds were bought at @1200 USD. On 31st March 2023, the Market price of Bonds stood @ 1240 USD. The number of Bonds purchased by ABC Bank is 20000 units. Based on the above:


Amount in USD

Purchase Price 1200

No of Bonds purchased 20000

Total Book Price 24,000,000

Market Price on 31st March 2023 1240

Book Profit per unit of Bond 40

Total Book Profit as on 31st March 2023 800,000

 Further Book Profit is not confined to just investments but also to normal business revenues as well however the methodology to compute Book Profit differs in the case of business form as per Income Tax rules prevalent in the country to which the business belongs.

Book Profit in Share Market

Book Profit in Share Market implies the timely booking of profits else it remains as Mark to Market (MTM) Notional profit. The value of securities in the share market keeps on fluctuating resulting in notional gains/losses on the securities held. When securities are held in the books of the business with gains it is called Book profits, however, this profit can’t be accounted for by the business as it is not realized.

Let’s understand this with the help of another example:

Ram bought the following shares on varying dates in the month of January 2023 namely;

Share Name

Price ( in USD) Quantity

Total (in USD)

Reliance 34 1000 34000

HDFC 20 400 8000

Google 100 700 70000



On 31st March it was informed that Ram has the following position:

Market Price ( in USD) Quantity

Total (in USD)

Reliance 70 700* 49000

HDFC 30 400 12000

Google 400 700 280000



*300 shares of Reliance sold @$70 per share.

Now we can see Ram will report a Net profit on the shares sold and Book profit on the shares which are still held by him as under:

Realized Profit which will form part of Net Profit as it is realized:

(300 * {36}) =$10800

Book Profit for Ram as on 31st March 2023 will be as follows:

Market Price ( in USD) Book Price ( in USD) Quantity

Book Profit (in USD)

Reliance 70 34 700 25200

HDFC 30 20 400 4000

Google 400 100 700 210000



Book Profit as per Income Tax Act

As per Income Tax Act guidelines, it is derived from Net profit after adjusting for the following items:

Addition of Income-tax payable/paid by the business which is included in the computation of Net Profit.

Addition of amount transferred to any reserves and amount provision for contingent liabilities.

Addition of provision for losses set aside for subsidiaries of the business and any dividend paid or proposed to be paid.

Addition of certain expenses related to incomes that aren’t permission as per the provision of the Income Tax Act for the purpose of computation of Book Profit.

Reduction by any amount added to derive Net Profit such as Long term capital gains, royalty, etc.

Reduction of Non-cash expenses such as Depreciation if debited to P&L account for computation of Net Profit.

Reduction of the amount of any brought forward unabsorbed depreciation use for computation of Net Profit.

Book Profit vs Net Profit

The two terms are used frequently in accounting parlance; however, differ a lot. Key differences are enumerated below:


Book Profit

Net Profit

Taxability Book Profit is not used for determining tax in the case of Business forms such as Company etc. Net profit is derived after adjusting for the tax liability of the business.

Meaning Book Profit refers to the profit computed as per the Income Tax Act relevant to the business. Net profit refers to the profit computed as per the Book of Accounts of the company in accordance with the Companies Act relevant to the business.

Analyst Focus It is not tracked by the Analysts and stakeholders but is used more for taxation purposes only. It is closely tracked by Analysts and stakeholders and is an important number used for various financial ratios purposes.

Importance of Book Profit

Every legal entity is liable to pay income taxes in the country in which it operates and in order to pay its tax liability it is required to determine its tax liability which the first and foremost step in tax management. Determination of Book Profit is necessary for the purpose of calculating the Tax liability.


It is an accounting term which implies profits which are notional in nature and not realized by the business. Due to the notional nature, these profits are contingent and can change over time and maybe even wipe out completely as well in case of a drop in prices. In other words, we can say that Book Profits are paper profits and as such, they are not taxable in nature unlike Realized Net profits of the business.

Recommended Articles

This is a guide to Book Profit. Here we also discuss the definition and book profit in share marketing along with example and importance. You may also have a look at the following articles to learn more –

Apple Comes Out Fighting In Irish Tax Appeal, Says €13B Ruling Defies Reality

The two-day Irish tax appeal is underway, with both Apple and Ireland appealing against a ruling that the Cupertino company must pay €13B ($14.3B) in underpaid tax over more than two decades.

Apple isn’t pulling any punches, its lawyer arguing that the ruling ‘defies reality and common sense’ …


We recently provided a quick summary of events to date.

Apple funneled the revenue from all its sales throughout the EU through its European HQ in Ireland. Apple likely chose the location because the country already had an extremely low rate of corporation tax compared to other EU countries, at just 12.5%, and the Irish government further sweetened the deal with special arrangements which meant the iPhone maker paid even less.

The EU ruled that these arrangements were illegal. It was the Irish government, rather than Apple, which was found to have broken the law, but because the arrangement was not lawful it meant that Apple owed the taxes which should have been collected.

As both parties appealed, it was agreed that Apple would pay the sum into an escrow account, where it would be held pending the appeal.

Apple CFO Luca Maestri is heading a team of six execs who will be giving evidence in the case.

Irish tax appeal – opening arguments

Reuters reports Apple’s opening arguments in the case.

The European Union’s order for Apple to pay 13 billion euros ($14 billion) in back taxes to Ireland “defies reality and common sense,” the U.S. company said on Tuesday, as it launched a legal challenge against the 2023 ruling.

The iPhone maker also accused the executive European Commission of using its powers to combat state aid “to retrofit changes to national law,” in effect trying to change the international tax system and in the process creating legal uncertainty for businesses.

One of Apple’s arguments is somewhat disingenuous.

“The Commission contends that essentially all of Apple’s profits from all of its sales outside the Americas must be attributed to two branches in Ireland,” Apple’s lawyer Daniel Beard told the court […]

“The activities of these two branches in Ireland simply could not be responsible for generating almost all of Apple’s profits outside the Americas.”

The reason that profits from multiple countries are being attributed to Ireland is, of course, precisely because Apple chose to funnel all revenue from EU countries to two companies based there.

Apple also didn’t deny the very low rate of tax paid on money received in Ireland.

Beard dismissed criticism of the 0.005% tax rate paid by Apple’s main Irish unit in 2014, which was cited by the Commission in its decision, saying the regulator was just seeking “headlines by quoting tiny numbers”.

Paying an average global tax rate of 26%, Apple has said it is the largest taxpayer worldwide and is now paying around 20 billion euros in U.S. taxes on the same profits that the Commission said should have been taxed in Ireland.

Ireland, which is also appealing, made two main arguments. First, that such rulings should not be retroactive. Second, that the EU is effectively trying to fix a global tax problem with a local ruling.

“As Ireland has already emphasized, it undermines legal certainty if state aid measures are used to retrofit changes to national law … and legal certainty is a key principle of EU law; one upon which businesses depend,” Beard said.

“Some may want to change the international tax system; but that is a tax law issue – not state aid,” he said.

There will be further arguments from Apple and the Irish government throughout the day, and the European Commission is expected to make its case tomorrow. The judges will also hear arguments from Luxembourg, Poland and the European Free Trade Association, each of which has its own angle on the legality of the ruling.

Although the Irish tax appeal hearing is short, we shouldn’t expect the matter to be settled anytime soon: a ruling is expected to take several months, and whichever side loses will almost certainly appeal to the European Court of Justice.

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