The co-founder of Apple, Steve Wozniak, has acknowledged that the computer company's tax arrangements bear scrutiny but says the only way to create a fair tax system is to tax large corporations and individuals in exactly the same way.
Speaking at the European Business Innovation Centre Network Congress in Londonderry, Wozniak said 'criticism of Apple's tax policies is extremely warranted, in my mind, but my explanation is rather long and difficult'.
Wozniak set up the the company for a $300 (£197) stake along with Steve Jobs in 1976, but left Apple in 1987.
'For a corporation there is no such thing as personal ethics, you will do anything, any scheme you can to maximise your profits, so they are just obeying the system, the big companies are all obeying the system of taxation, they are all doing the same things and you can say the system is bad to allow these things that people do not consider ethical,' Wozniak said.
In his speech, Wozniak maintained that only a total overhaul of the tax system would create a level playing field for companies and individuals and 'empower the little guy' in the same way as he had tried to do by creating the Apple computer.
Wozniak said: 'People are not taxed on profit, they are taxed on income, corporations should be taxed the same as people in my mind, that is how it should be, that would make things fair and right.'
'That means corporations pay taxes on all of their revenues or people only pay it on a tiny amount called profit and until we rectify that the whole problem is just with us forever,' he stated.
Wozniak said it was 'really not fair' that businessmen were able to write off lunches and cars against tax, and said that if ordinary people were also allowed to do this they would have more savings.
'A person would say, "my life is my business and I have to pay for my home, pay for my clothes, my food and what is left over if I make a little money some year and put it in savings, that is my profit", but people are not taxed on profit, they are taxed on income,' Wozniak said.
A US Senate committee has recently criticised Apple for paying just 2% tax on $74bn in overseas income, mainly by using a loophole in its Irish subsidiary. Ireland has denied it negotiated a special tax rate with Apple and refused to take the blame for the company's low global tax payments.
