Amazon buyers in Massachusetts have another 11 months to enjoy before the retail giant starts collecting sales tax on their purchases.
In a deal reached with Massachusetts regulators, Amazon will begin imposing a sales tax on all online purchases made by state residents as of November 1, 2013. The agreement was reached only after several months of negotiations, according to The Wall Street Journal.
Amazon has naturally resisted charging its shoppers state-by-state sales tax. In the past, the company has instead proposed using a national law that would regulate the collection of all online sale tax rather than leaving it … Read more
A hashtag launched today by President Obama to push his tax cuts plan was quickly appropriated by a conservative think tank.
In the face of the approaching "fiscal cliff," Obama began promoting the hashtag #My2K on Twitter today as a way of encouraging discussion about his plan to preserve tax cuts for the middle class while letting expire those tax cuts on Americans households earning more than $250,000. The hashtag reflects the extra $2,000 the average middle class family of four could expect to pay if the tax cuts are allowed to expire.
The president used … Read more
Apple has been told to pay an additional $28.5 million in back taxes to the Australian government, a report out of the country says.
The Sydney Morning Herald is reporting today that the Australia Tax Office actually hit Apple with the charge in April. According to the news outlet, Apple's Australian division generated $4.9 billion in revenue last year but paid only $94.7 million in taxes.
If a firm can generate billions of dollars in sales and only pay minimal tax rates, is it fair?
Reuters reports that executives from Google, Amazon, and Starbucks will be queried today by the U.K.'s Public Accounts Committee.
The questions that will arise are whether these firms are conducting themselves fairly in light of the current economic climate, and whether the amount of tax paid in the U.K. by each company is acceptable when they make millions abroad -- or use legal maneuvering to pay as little as possible when the taxman comes knocking.
The Public Accounts … Read more
A nearly four-year tax audit of the Mozilla Foundation is finally over. And it looks like the foundation got off easy by handing over just $1.5 million to the U.S. government.
Mozilla Foundation Chair Mitchell Baker announced in a blog post today that the Internal Revenue Service (IRS) closed its audit and agreed to settle with the company.
"I'm happy to note that we've settled the issues raised and the IRS recently closed the audit," she wrote. "We entered into a settlement, under which the Mozilla Foundation paid the IRS US $1.5 … Read more
The company paid $713 million in taxes on $36.87 billion in foreign profits, according to its annual filing with the Securities and Exchange Commission. The Sunday Times was the first to spot the figure.
In comparison, Apple paid $12.26 billion in federal taxes for profits generated in the U.S., and $1.06 billion in state taxes.
Apple, like many other global companies, generate much of its profits overseas where tax rates are more favorable. But the … Read more
The U.K. is accusing Facebook of dodging taxes in 2011. According to the Guardian, tax experts said that the tech company reported lower sales figures than estimated and explicitly set up its headquarters in Dublin, Ireland, to reap the benefits of lowered tax incentives for corporations.
"The U.K. is being taken for a ride," Tax Research U.K. director Richard Murphy told the Guardian. "Facebook is taking standard practice for these IT companies to a new high, or low, depending on how you look at it."
Facebook paid $313,345 to the U.K. … Read more
Silicon Valley's economy seems to be recovering more quickly than the rest of the nation's, with employers hiring and venture capitalists offering sunny predictions. There's even a new reality show based here.
It may not last. A new analysis of how business-friendly states are -- released today by the nonpartisan Tax Foundation -- shows that California is way at the bottom. The Golden State ranks a dismal 48 out of 50.
"States do not institute tax policy in a vacuum," said Scott Drenkard and Joseph Henchman, the study's authors. "Every change to a … Read more