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Posts by Gatorguy

"...Cook emphasized to POLITICO last week that Apple already pays roughly $6 billion just in U.S. income taxes — a point executives will make again on Tuesday."Anticipating that argument at the hearing, however, the report prepared by Levin and McCain’s staff casts doubt on Apple’s numbers. Instead, investigators noted Apple’s own calculations included deferred tax payments — money it’s not paid the Treasury, but must if it brings back its foreign dollars. While it’s a...
Thank you for the polite and informative post. In essence Apple is not paying a 25% tax rate on worldwide income, but is making a tax allowance for future repatriation on some small portion of their foreign earnings should it become necessary and using current US tax rates to determine what those future taxes might be should they ever need to be paid. Did I get that correct this time?By the way you appear to have some impressive knowledge on the subject. Do you work in the...
Didn't Apple take out loans for buybacks to avoid repatriating cash?
http://www.nytimes.com/interactive/2013/05/25/sunday-review/corporate-taxes.html?_r=0http://www.bloomberg.com/news/2013-05-23/apple-tax-rate-ignores-profit-shifting-offshore.htmlhttp://seekingalpha.com/news/1036491http://seekingalpha.com/news/1047151
Well isn't that what I indicated when I first questioned your 25% tax rate claim? I don't see any way that Apple's actual taxes paid resulted in a 25% effective rate on their worldwide profits and apparently you don't find it to be fact either after taking another look.
[edit
I had added an edit to the post that you may have missed.This footnote from Apple's 2011 10-K puts some numbers in perspective as to tax liabilities. i'm sure there's a more recent one if anyone is intersted in looking."The foreign provision for income taxes is based on foreign pretax earnings of $24.0 billion, $13.0 billion and $6.6 billion in 2011, 2010 and 2009, respectively. The Company’s consolidated financial statements provide for any related tax liability on...
Sog is correct about cash vs accrual but I believe his claim that Apple pays a 25% corporate tax rate on it's worldwide earnings under whichever method he chooses to use is far from correct, which is the point of contention. You might read thru this paper too for any inconsistencies or errors leading to the 14% effective tax rate claim.http://www.olin.wustl.edu/docs/Faculty/Dyreng%20Markle%2018Sept2013.pdfThis footnote from Apple's 2011 10-K puts some numbers in...
As a CPA yourself you'll no doubt fully understand this research on determining the real effective tax rate paid by Apple and others.http://onlinelibrary.wiley.com/doi/10.1111/j.1475-679X.2009.00346.x/abstract;jsessionid=847E7C3C681AB779E444DD8A98D33EF6.f03t01?deniedAccessCustomisedMessage=&userIsAuthenticated=falseIt should help you understand a bit better if you actually take the time to read it. As a financial professional I'm sure you have access to Wiley Online.If you...
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