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Companies hoard cash because they want to ensure continuity. I loose respect for companies which go an extra mile to exploit loopholes. All companies do it. Fo

Companies hoard cash because they want to ensure continuity. I loose respect for companies which go an extra mile to exploit loopholes. All companies do it. For example - Apple borrows money to pay dividend to stock owners even though they have unbelievable amount of money. But somehow the messed up US tax code this action sounds logical.

astrodust 8y ago
That's just what you get when you hire accountants that know what they're doing and are obligated to pursue the path which results in the lowest amount of tax paid as permitted by law. If Apple didn't do this they'd get sued. Activist shareholders would be all over them in an instant. That puts them in a tough spot. I'm sure Apple would rather that loophole was closed, it's really absurd that they have to do all this just to make it work, but there's nothing they can do about it. The problem here is that the US tax system is utterly bizarre.
- fjsolwmv 8y ago
  It's an utter myth that a company can be punished by its shareholder's for paying too much tax, just as it's a myth that they could be punished for letting their employees due paid volunteer work.
  - astrodust 8y ago
    Tell that to Carl Icahn.