Apple's tax ruse is astonishingly cynical

Remember when Apple was as fresh, green and wholesome as the fruit it’s named after? I don’t really either, but the most recent news — reported in today’s Times — that Apple is "pursuing the holy grail of tax avoidance" by setting up subsidiaries that are not based in any country is quite astonishingly cynical. 

According to the report, one subsidiary called Apple Operations International has no employees or offices anywhere. It’s certainly a creative solution — but when developing countries lose eight times more to tax evasion than they receive in aid ($385bn according to DFID) and the UK tax gap is estimated at £30bn, the creative minds behind the tax ruse ought to be using their skills elsewhere.

The concept of not registering in any country at all is an interesting one, and something I’ve been researching when it comes to wealthy individuals. Projects like "The World" — a globe-crossing luxury boat containing 165 private residences so that ‘home’ is wherever ‘The World’ is — loosen the ties that usually exist between an individual and a particular country (and their inland revenue.) 

Last year, 1800 Americans gave up their US citizenship. While some renounced their US citizenship for political reasons (often because they object to US foreign policy), a large proportion did so for tax reasons. The US is one of only four countries in the world (the others are the incongruous gang of North Korea, The Philippines and Eritrea) that tax their citizens regardless of where they are living. Most other countries tax individuals on the basis of residence. 

The vast majority of Americans who have expatriated have taken up a second nationality instead, but the US is also unusual in that gives citizens the option of becoming stateless ie. having no nationality at all. There are an estimated 12 million stateless people in the world — people who often face grave difficulties, including a lack of access to state welfare, education or healthcare or travel documents. But a handful of people are known to have become stateless voluntarily.

I’ve spoken to one of them, and next issue I’ll be exploring whether the rich will consider statelessness as a radical way to avoid tax.

Photograph: Getty Images

Sophie McBain is a freelance writer based in Cairo. She was previously an assistant editor at the New Statesman.

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.