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Apple avoids potential $9bn tax bill

Posted By admin On May 2, 2013 @ 4:59 am In Money Watch | Comments Disabled

Financial Times [1]
May 2, 2013

Apple will avoid a potential tax bill of up to $9bn by using the proceeds from its $17bn blockbuster bond issue to pay shareholders rather than bringing back cash from abroad.

The technology group would have paid as much as 35 per cent in tax to bring that amount of cash back into the US, according to lawyers and accountants.

Apple, which has $100bn worth of offshore cash compared with just $45bn in the US, last month announced it would partly fund a record-breaking $55bn share buyback programme [2]by using money raised in the corporate bond market.

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 [3] this week will cost it around $310m a year in interest payments, it will regain about a third of that due to tax deductions.

Full article here [1]


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URL to article: http://www.prisonplanet.com/apple-avoids-potential-9bn-tax-bill.html

URLs in this post:

[1] Financial Times: http://www.ft.com/cms/s/0/2ac24238-b25c-11e2-8540-00144feabdc0.html#axzz2S7zPPKNY

[2] record-breaking $55bn share buyback programme : http://www.ft.com/cms/s/0/2c283830-ac49-11e2-a063-00144feabdc0.html

[3] $17bn borrowing from the corporate bond market: http://www.ft.com/cms/s/0/3ce27f5a-b19e-11e2-9315-00144feabdc0.html

[4] Apple Now Has More Cash Than The U.S. Government: http://www.prisonplanet.com/apple-now-has-more-cash-than-the-u-s-government.html

[5] Apple paid no UK corporation tax in 2012: http://www.prisonplanet.com/apple-paid-no-uk-corporation-tax-in-2012.html

[6] IT’S OFFICIAL: Apple Has Brainwashed The Whole Country — How Else To Explain The Lack Of Outrage Over Apple’s Secret Location Tracking?: http://www.prisonplanet.com/its-official-apple-has-brainwashed-the-whole-country-how-else-to-explain-the-lack-of-outrage-over-apples-secret-location-tracking.html

[7] Mess With Apple Store Customers, Apple Sends The Secret Service After You: http://www.prisonplanet.com/mess-with-apple-store-customers-apple-sends-the-secret-service-after-you.html

[8] Apple ‘avoiding billions in global taxes,’ report claims: http://www.prisonplanet.com/apple-avoiding-billions-in-global-taxes-report-claims.html

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