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Apple May Bring Back Billions In Profits To The U.S. (siliconbeat.com)

Posted by EditorDavid on from the thinking-different dept.

An anonymous Slashdot reader quotes a report from the San Jose Mercury News: Apple CEO Tim Cook says the company plans to bring back billions of dollars in profit to the U.S. next year. Cook's statement, made during an interview with RTE radio Thursday, contradicts his previous public statements on the issue: He has said for years that U.S. corporate taxes are too high, and that the Silicon Valley company wouldn't be repatriating profit until its home country changed its tax code.

"Right now I would forecast that we repatriate next year"Cook said, saying that the company has "provisioned several billion" for that purpose.
An interesting side-note: Apple accounts for 40% of Silicon Valley's profits.

2 of 302 comments (clear)

  1. Lower Corporate Tax Rate by nehumanuscrede · · Score: 4, Interesting

    I would be all for lowering their taxes, on one condition.

    American workers only within the US.

    You want the tax breaks ? You quit going the H1B route cheating the US workforce out of a job.

    You hire foreign labor ? Your tax rate will increase to compensate. Pretty simple. Do the math, set the rates to make hiring US workers a financial win for the company. Price of doing business in the US I'm afraid.

    Don't like it ? Move your company to India or Ireland or wherever you want. See how well you do when you're denied access to the US market.

    Those that are gaming the system can just gtfo or deal with the tax man.

  2. Proit by ledow · · Score: 5, Interesting

    It's easy to make more profit than your competitors when you're aren't paying any tax, in any country that you operate in.

    Strangely bad for PR when it gets on the news, though. And strangely ends up changing from a hush-hush golf-and-a-posh-meal secret deal with the local ministers to laws being changed to prevent it happening when it does make the news.

    Starbucks found that out in the UK.

    So, technically, Apple don't make 40% of the profits in the Silicon Valley. Because those profits aren't properly taxed. And they aren't registered as profit in Silicon Valley at all. They are registered as profit only in Ireland. Which was charging them basically 0% tax. They are the LEAST profitable company in Silicon Valley, or else the US taxman would have had their share a long time ago.

    But they are in fact the most profitable in Ireland, while also being the least taxed. Strange that.

    I could earn twice what I do if I didn't have to pay tax.

    And I could make any company outstrip all its competitors if it didn't have to pay tax (get company, make no changes, stop paying tax, bang, you just doubled your profit most likely, and can lower prices or buy suppliers to put your competitors out of the market).

    I'm much more interested in an article entitled "Who pays the most tax in Silicon Valley?"