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It's money that they've made overseas from selling products through their foreign retail and wholesale divisions, so they didn't really "send it out."
by trevyn 10y ago
It's money that they've made overseas from selling products through their foreign retail and wholesale divisions, so they didn't really "send it out."
- ThomPete 10y agoWhere are the money they made in the US then?
- pjc50 10y ago.. in the US. Probably paid out in dividends and salaries.
- jjtheblunt 10y agoAnd invested by Blackburn or whatever the Nevada corp is...Google it.
- donarb 10y agoIt's called Braeburn, a type of apple.
- ThomPete 10y agoSo they have 246B + US hoard?
- ThomPete 10y agoApple have famously not paid out much dividend though.
- ThomPete 10y agoWhoever down votes will you please explain exactly where I am wrong here?
- valuearb 10y agoCurrently Apple pays around $12B a year in dividends. It has averaged over $10B a year the last 5 years or so. It's expected if a repatriation bill passes, Apple will pay out a special one time dividend to shareholders, and some think it will be as big as $100B.
- GCA10 10y agoActually, we're talking about money companies have ascribed to overseas operations, sometimes because that's actually where they do traditional manufacturing and sales ... and sometimes because they've created the darnedest shell companies to make it seem as if they're earning all their profits in Luxembourg, Ireland, the Bahamas or other tax havens. Jesse Drucker wrote a lot about such tax maneuvers during his years at Bloomberg News. An overall link to his work is here: https://www.bloomberg.com/authors/APuiS-bL1Fc/jesse-drucker https://www.bloomberg.com/authors/APuiS-bL1Fc/jesse-drucker
- cdash 10y agoBullshit. This is not money that has been "earned" overseas. Its money that has been earned in the US but put on the book as overseas income.
- valuearb 10y agoThat would actually be tax evasion, and it's illegal. There is no evidence for your assertion. What actually happens is Apple sells product to international subsidiaries to sell in their countries. In some cases international subsidiaries build products and sell them to Apple US and other subsidiaries. The profits from international sales and production are profits in the subsidiaries that sold or made them. They aren't taxable in the US until those subsidiaries pay dividends to their owner, Apple US. Given that the US and California corporate income tax rates combine to equal 40%+, Apple US chooses not to take dividends from the subsidiaries at this time, and allows the profits to accumulate in savings accounts overseas.* *this is a simplification of course, but basically accurate. One thing Apple does is funnel lots of the subsidiary profits to Apple Ireland, because Ireland's tax rates for the bank account interest is extremely low. But it all works out the same as Apple Ireland is a subsidiary of Apple US, and Apple US can't touch those profits without losing over 40% of them to US/CA taxes.
- cdash 10y agoYou can talk about how that would be tax evasion and it would be illegal but in practical terms that is exactly what they are doing. They just have hired a bunch of lawyers to tell them how to do it so that it is legal. By the way, when you talk about selling product to international subsidiaries you are actually talking about putting their IP ownership in international subsidiaries and then having the American subsidiary pay licensing fees so that no profit is made in the US.
- EduardoBautista 10y agoIf it were that easy everyone would do it.