AfterDawn: News

Apple has a huge problem with its money

One problem you wouldn't think Apple has is money. Well, it seems that that's exactly one of the problems the company has. However, it is not lack thereof but instead the location.

Apple holds much of its cash overseas where it is not as convenient as it would be in the US. Tim Cook and company have to find out a way to use it or transfer it without paying a huge amount of US taxes, Bloomberg reports.



The cupertino tech giant has now almost 90 percent of its cash stored in offshore subsidiaries. That makes this a 200 billion – yes, billion – dollar problem.

These subsidiaries are not required to pay the 35 percent corporate tax rate of United States but it also means that Apple cannot use them for acquisitions – or much of anything really.

Obviously Apple is trying to lobby a tax reform for the corporate tax that is the highest in the industrialized world while some want the cash overseas to be taxes in the same fashion as in the US.

Written by: Matti Robinson @ 25 Jul 2015 7:31

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• 3 comments

• Bozobub

  Thing is, what corporations actually pay in taxes, much like those of filthy rich individuals, is in reality far, FAR lower than 35%.
  
  As George Soros mentioned, he pays a lower percentage of his income in taxes than his housekeeper.
  
  So, be prepared for a bunch of silly hyperbole that has little to do with actual facts, when Apple whines about taxes.

  25.7.2015 10:23 #1

• mightyzog

  I'll hold it for them. I would love to have the problem of where to keep my 200 billion dollars. The government should tax a company's net value instead of the actual money that they have in the U.S.. This would keep these scumbag companies from "hiding" their money in offshore accounts. This is what happens when you give them incentives to do so.

  25.7.2015 15:08 #2

• WW3

  Originally posted by mightyzog: I'll hold it for them. I would love to have the problem of where to keep my 200 billion dollars. The government should tax a company's net value instead of the actual money that they have in the U.S.. This would keep these scumbag companies from "hiding" their money in offshore accounts. This is what happens when you give them incentives to do so.
  
  

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  25.7.2015 21:49 #3