Should we give tax sops to Apple?

Apple, makers of iPhone and iPad, has removed its VPN services from its app stores in China. VPN, or Virtual Private Network makes point-to-point connections, allowing users to bypass censorship with relative anonymity, and is encrypted, so that messages cannot be read. Both China and Russia have cracked down on VPNs because they want to eliminate online dissent in any form. Naturally, Apple CEO, Tim Cook defended the decision saying that the company always obeys local laws. Of course, it does, especially as revenue has fallen 14% in the first quarter of this year. Over 20% of Apple's profits come from China, so Cook will justify any government action so as not to annoy authorities there. The same Tim Cook took a highly principled stand against unlocking an iPhone used by the San Bernadino shooter Syed Farook. "At stake is the data security of hundreds of millions of law-abiding people and setting a dangerous precedent that threatens everyone's civil liberties," he said at the time. Ah so, who cares about law-abiding Chinese? Liu Xia, widow of Liu Xiaobo, who developed liver cancer while in prison for dissent and died last month, has been 'disappeared' by the government in Beijing so that she cannot talk to journalists. Bloomberg Gadfly explored both sides of the Apple story. Tim Cook is depending on sales in China to keep profits at high levels and keep shareholders happy. And high profits ensure juicy bonuses. Last year Cook home around $8.75 million, of which his base salary was $3 million and $5.37 million was bonus. Unfortunately, that was quite insufficient because he was paid a salary of $10.3 million in 2015. Apple links compensations to performance and revenue generated by the company was a mere $215.6 billion when the target was set at $223.6 billion. Operating income was $60 billion, instead of the expected $60.3 billion. As Lalu Prasad said,"I don't want them to die in poverty," when defending his sons against charges of Rs 5 billion land scam. Manufacturing and selling in China has other benefits, like avoiding taxes in the US, which increases profits. And bonuses. India also has 1.3 billion people, just like China, but most people are unable to buy expensive Apple products so the company refuses to produce its phones in India unless it is bribed with tax sops. Before we get excited we must remember that the European Union has asked Apple to pay $14.5 billion in back taxes. Principles cost money. So, is it a good apple that keeps the doctor away or a bad apple which we should avoid? Depends on the money.