Truly, the New York Times of late has gone totally stupid in its reporting on Apple. First, it hammers Apple for practices engaged in by just about every electronics company on the planet, and of late, it jumps on the Warren Buffet bandwagon by citing — erroneously — that Apple paid only 9% taxes on its corporate income.
However, as Tim Worstall points out at Fortune, the Times gets it completely wrong. Is there an agenda at the Times? Are they pissed that the Wall Street Journal gets sneak peeks at its new products and they don’t, or is my good friend and Apple uber-hater, Mike Malone its new owner?
So, over the 12 months of financial year 2011 Apple had to make cash payments of taxes four times, two weeks after the end of each quarter. Note that Greenlining and the NYT are using actual cash paid in the financial year, not what will or might be due as a result of the financial year.
In other words, if you are a corporation required to submit quarterly taxes, you base your calculations on the previous year, not the current. Since Apple is making huge leaps in profits from one year to the next, the Times calculates Apple’s liabilities based on this year’s profits, not last year’s, as would any accountant.
Hast the Times gone stupid? You decide.