“On Thursday, Mr. Cook, in an interview with Irish state broadcaster RTE, appeared to go a step further, saying Apple could start to move some of the profits it has earned from its international operations to the U.S. next year,” Hannon reports. “‘We provisioned several billion dollars for the U.S. for payment as soon as we repatriate it, and right now I would forecast that repatriation to occur next year,’ Mr. Cook said in the interview.”
“Companies based in the U.S. are subject to 35% corporate tax rate on global profits when they bring that money home, though they can also get tax credits for payments to foreign governments. Many executives, including Apple, have said that rate is unfair,” Hannon reports. “The company reported in 2014 an effective tax rate of 26.1% on its world-wide profits, including the foreign tax provisions that are unpaid, a level Mr. Cook described as ‘reasonable.'”
Read more in the full article here.
MacDailyNews Take: Let’s not do another “one-time-only” (smirk) repatriation holiday. Let’s fix the broken U.S. corporate tax code instead. Let us eschew the easy way out, that fixes nothing in the long run, and choose to do the hard work instead.
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