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Mon Jan 7, 2013, 01:29 PM

How Apple's Avoiding Billions in Taxes

"With the U.S. Senate reportedly finishing an investigation into how Apple and others dodge taxes, and with Apple fighting for an officially sanctioned tax holiday, it’s worth taking stock of Apple’s tax liabilities. Dealing with the tax man, it turns out, could cost the company upward of $28.5 billion or send it on a shopping spree abroad.

"Even as Apple lobbies for corporate tax amnesty, it has accounted for some of its potential future tax bills in filings with federal securities regulators, a move that helps Apple avoid embarrassing earnings re-statements if it is later forced to pay taxes. In the filings, Apple says it had $14.7 billion in deferred tax liabilities overseas as of Sept. 29, when its fiscal year ended. In a footnote, the company acknowledges there’s another $13.8 billion in “unrecognized deferred tax liability” from money it intends to keep perpetually out of the U.S. If the company ever decides to bring all its money home, and then pays taxes on it at currently anticipated rates, the bill would come to $28.5 billion, plus additional taxes on any profits moved overseas since Sept. 29.

"Apple’s big tax liabilities are important considerations when thinking about the company’s vaunted cash and securities hoard, which reached $121.3 billion three months ago. Fully $82.6 billion of that money was held by Apple’s foreign subsidiaries, which collect much of Apple’s profit as part of a popular tax avoidance scheme in which offshore subsidiaries hold a tech company’s intellectual property and the U.S. parent then licenses the intellectual property back. Thanks to such maneuvering, Apple paid just 1.9 percent on foreign earnings in its last fiscal year.

"Meanwhile, Apple is planning to distribute $45 billion in dividends over the next three years. . . . "


Much more at Wired, at http://www.wired.com/business/2013/01/apples-28-billion-dollar-tax-war/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wired%2Findex+%28Wired%3A+Top+Stories%29 .

7 replies, 767 views

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Arrow 7 replies Author Time Post
Reply How Apple's Avoiding Billions in Taxes (Original post)
snot Jan 2013 OP
Dkc05 Jan 2013 #1
hft_trader Jan 2013 #2
Dkc05 Jan 2013 #3
Nye Bevan Jan 2013 #5
jsr Jan 2013 #4
Nye Bevan Jan 2013 #6
hfojvt Jan 2013 #7

Response to snot (Original post)

Mon Jan 7, 2013, 03:34 PM

1. Need to nationalize Apple for cheating

we can't pay our bills if our mega companies are cheating us. Take their caompany away from them.

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Response to Dkc05 (Reply #1)

Mon Jan 7, 2013, 07:10 PM

2. cheat

 

Can we take the government away when they cheat us too?

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Response to hft_trader (Reply #2)

Tue Jan 8, 2013, 09:43 AM

3. No they can't but apple cheated 121 Billion from us.

That is real dollars that could be used for social programs.

It's now clear why Apple Inc. keeps a big chunk of its $121 billion overseas: The tech giant could stand to pay more than $28 billion in taxes if it brought that money back to the United States

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Response to Dkc05 (Reply #1)

Tue Jan 8, 2013, 09:53 AM

5. They are not "cheating". What they are doing is 100% legal.

They owe no US taxes on profits accumulated abroad unless and until those profits are repatriated.

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Response to snot (Original post)

Tue Jan 8, 2013, 09:47 AM

4. Apple could buy Intel, HP and Dell and still have change left over

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Response to jsr (Reply #4)

Tue Jan 8, 2013, 09:54 AM

6. I bet Michael Dell wishes he'd invented the iPhone (nt)

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Response to snot (Original post)

Tue Jan 8, 2013, 10:11 AM

7. $45 billion in dividends over the next three years

and thanks to Obama's Second Cave, those $45 billion in dividends will be taxed at just 20% instead of 39.6% or even 35%. Supposing $20 billion of those dividends goto members of the top 1% that's a tax savings of almost $4 billion.

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