4 ms·

Bullshit. 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 9y ago
  That 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 9y ago
    You 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 9y ago
      If it were that easy everyone would do it.
      • ThomPete 9y ago
        They are