POST Online Media Lite Edition


Samsung and U.S. against Apple

Staff writer |
Samsung Electronics's smartphones and Google's Motorola devices gained ground among U.S. consumers in an annual satisfaction rating. Apple's iPhone is falling down and the company has been accused of tax avoidance.

Article continues below

Apple's smartphone is still the top model among mobile-phone users with a score of 81 but Samsung and Motorola have narrowed the gap, according to the American Customer Satisfaction Index.

The iPhone fell 2.4 percent, compared with a year earlier, while Samsung devices climbed 7 percent to a satisfaction score of 76 and Google's Motorola rating increased 5.5 percent to 77.

However, that's not the only problem Apple has. The company has avoided tens of billions of dollars in U.S. taxes, according to a Senate report. Apple has used a web of offshore entities, including three Ireland subsidiaries it said don't have tax residency in any country, to cut some of its tax rates to 0.05 percent, the Senate Permanent Subcommittee on Investigations reported.

One of those Apple subsidiaries reported $30 billion in net income for 2009-2012, yet filed no corporate tax return and paid no income taxes to any government, the panel reported in advance of a public hearing. Another affiliate received $74 billion in sales income over four years, but paid taxes "on only a tiny fraction of that income," the report said. The company also avoid taxes on $44 billion in offshore income from the intellectual property rights, says the report.

There is a subsidiary Apple Operations International incorporated in Ireland but with a bank accounts in the United States. Since U.S. bases residency on where companies are incorporated, and Ireland on where they are managed, Apple Operations International was able to avoid taxes in both countries.

What to read next

Samsung lost patent fight with Apple in South Korea
Apple and Samsung to stop spending money in vain
Obama has 48 hours to save Apple iPhone