Top Leaderboard, Site wide
Left Masthead
October 13, 2015
Truthdig: Drilling Beneath the Headlines
Sign up for Truthdig's Email NewsletterLike Truthdig on FacebookFollow Truthdig on TwitterSubscribe to Truthdig's RSS Feed

Dr. Ben Carson, Crackpot

Primo Levi, Complete

Truthdig Bazaar
Acts of War: Iraq and Afghanistan in Seven Plays

Acts of War: Iraq and Afghanistan in Seven Plays

By Karen Malpede (Editor); Michael Messina (Editor); Bob Shuman (Editor); Chris Hedges (Foreword)

more items

Ear to the Ground
Print this item

Apple Walks Away From Multibillion Dollar Tax Obligation

Posted on May 2, 2013

Apple will deprive the American public of $9 billion in U.S. taxes by paying shareholders with proceeds from a $17 billion blockbuster bond sale instead of using money it made abroad.

The company has $100 billion of offshore cash compared with $45 billion held within the country. Any cash brought within national borders from abroad would be subject to a 35 percent tax rate, lawyers and accountants say.

The tariff would have been incurred by a record-breaking return of $55 billion to its investors.

—Posted by Alexander Reed Kelly.

Financial Times:

The company will also save around $100m a year from using the debt rather than straight cash. Although the company’s $17bn borrowing from the corporate bond market this week will cost it around $310m a year in interest payments, it will regain about a third of that due to tax deductions.

“There is a huge tax saving for Apple in borrowing the money rather than bringing it back to the US,” said Kevin Phillips, international tax partner at Baker Tilly. “The company will keep getting that $100m or so tax credit every single year.”

Gerald Granovsky, an analyst at Moody’s, said: “If you assume the statutory 35 per cent corporate tax rate, based on the data available and on a back of the envelope calculation, to generate in the US the equivalent of $17bn the company would need to repatriate $26bn.

“That is less attractive than paying the $300m in interest attached to this bond sale,” he added.

Read more

More Below the Ad


Square, Site wide

New and Improved Comments

If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.

Right 1, Site wide - BlogAds Premium
Right Skyscraper, Site Wide
Right Internal Skyscraper, Site wide
Right 2, Site wide - Blogads
Join the Liberal Blog Advertising Network

Like Truthdig on Facebook