I do have to clarify one thing, though. This EU action was done before the US changed it’s tax policies. Now, if I understand the tax circumstances correctly (and it’s complicated!), there is a lower corporate tax base but less opportunity to write off foreign taxes. Instead, there’s a sort of guaranteed minimum US tax.
Which is why I say this EU maneuver WAS designed to pick the US Treasury’s pocket....
So now, it’s possible that the money might come directly out of the hide of Apple investors. Or largely accrue to investors if Apple wins.
Which means, if they lose, it’s important for Apple to get to cash neutral ASAP. You can’t tax zero net cash.
Companies don't pay taxes based on how much cash they have. How will cash neutral affect the corporate taxes Apple would owe?
Don’t they? The Ireland operation was essentially a holding company for Apple’s international cash/net profit. What the heck DO you think they’re taxing if not net profit?
Is your tax bill based on how much cash you have in the bank? Gosh I wish mine was!
Absolutely it is, if that cash is profit you made abroad, hoarded there, and now need/intend to repatriate it.
That's the thing.
Ah, so no cash=no taxes? Well there you have it, spend like a drunken sailor and you'll never owe the IRS no matter how much you make. Thanks for straightening that out. Now it makes perfect sense that @"sacto joe" said: " it’s important for Apple to get to cash neutral ASAP. You can’t tax zero net cash."
Comments
" it’s important for Apple to get to cash neutral ASAP. You can’t tax zero net cash."
No cash means no taxes, right Spheric?