“The current 35 percent corporate-tax rate is too high for companies to pay when bringing money back from overseas, Cook was quoted as saying by the Washington Post,” Satariano reports. “Apple is facing U.S. government scrutiny after Cook unveiled a plan last month to return $100 billion in cash to shareholders via dividends and buybacks through 2015. Rather than using cash overseas that will be taxed, Apple is borrowing money for the payout, saving as much as $9.2 billion in taxes, according to Moody’s Investment Services.”
Satariano reports, “At the end of its last fiscal year, Apple had $40.4 billion in cumulative earnings outside the U.S. on which it hadn’t paid U.S. taxes. If that was brought back, Apple would owe $13.8 billion.”
Read more in the full article here.
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Tagged: Apple, tax holiday, tax repatriation, taxes, U.S. Congress, U.S. corporate taxes, U.S. taxes
