“political crap – well Cook-ed”

Scandals and no end … – still, there are some that deserve special attention. The Apple-tax avoidance policy is one of peculiar interest – for different reasons:
Think about the following:
I.
I pleaded on different occasions –  not least in connection with the data abuse by Facebook – for their socialisation: there seems to be little point in regulating monopolies – while at first glance tempering – it is a  no-go policy to break up monopolies that actually depend in their very functioning on being monopolies. Socialisation, e.g. state control, does not solve the problem but at least it puts it into a different regulatory perspective:
regulating private entities that are too big or securing democratic control over relevant political bodies, that is the question.
II.
Public control, then, is of course an issue that deserves …, not just special attention but a conceptualisation of the public itself that is serious about …, well , its public character. On this topic we read for instance:
public (adj.)
late 14c., “open to general observation,” from Old French public (c. 1300) and directly from Latin publicus “of the people; of the state; done for the state,” also “common, general, public; ordinary, vulgar,” and as a noun, “a commonwealth; public property,” altered (probably by influence of Latin pubes “adult population, adult”) from Old Latin poplicus “pertaining to the people,” from populus “people” (see people (n.)).
In any case, this is quite different from what we learn about the tax system in Europe and Ireland, reading in the mentioned article (my translation);
Instead, first Lienemeyer has to investigate and understand the Irish tax model as it is applied by Apple, that means first and foremost detective work.
Thus, adding value or or piracy-policies, that is another crucial question.
III.
There is the common saying about milking the cow to limits and it is commonly said that the pitcher goes often to the well, but is broken at last.
There is, in economics, so much talk about value chains – suggesting that the enterprise and country in which the enterprise is located gets a “fair share” – said in another way: as many products today – computers, phones, cars, fridges etc. – are produced in various places, with parts from different countries, the overall value of the product will be distributed between the countries, the contribution of each “valued proportionally”. One point to be considered here is that these value chains are, as Benjamin Selwyn points out, in actual fact poverty chains, the Apple-case clearly gives another good reason to question such concept.
Two passages from the said article in the SZ clearly show the contradiction:
At the time, Ireland replied in a letter to Brussels that Apple’s advanced technology, design and the intellectual property are exclusively rooted, developed and managed in the USA, thus making it impossible to attribute it to the Irish enterprises [enterprises  set up by Apple as mediators, solely dealing with sales]
However, a little later we read the following:
In the view of the head of the department at the EU-Commission it is fact that the Irish Apple-branches run their offices solely in Ireland, have their employees only there and are, thus, ordinary Irish companies. “Then the question is: who is generating the profit? A virtual headquarter or an industrial premise with real people working?” says Lienemeyer. As Apple maintains offices in the city of Cork. this is his conclusion, Apples global business is Irish. Consequently all profit has to be taxed in Ireland.
Ireland and Apple react by being shocked. In their understanding the global Apple-tree with its mature fruits always had its roots in California.
Both, Ireland and Apple see this a affront. At the end, the question is here:
eating the apples and rejecting the tree – is that a feasible option?
To be or not to be, that question needs urgently to be replaced: Who is allowed to define what being is – and who is allowed to determine the conditions of existence of others, of majorities?
Cook, Apple’s CEO, once spoke of ‘political crap’ coming from Brussels. Actually he may be not entirely wrong after all. Leaving the tax scandal aside, there are two fundamental issues that remain without consideration:
First, regulating sick and decaying systems, that are not only undermining like cancer the entire body but already replaced completely the entire body, is hardly enough as cure against the body snatchers.
Second, this requires not least to fundamentally overcome methodological nationalism: as long as we still think in competition between regions and nation states, global capitalism will unfold exponentially – paradoxically in niches of arrogant and sexist plutocracies.

 

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