“A key figure disappeared from Apple Inc.’s latest quarterly report. It’s also gone from the regulatory filings of Netflix Inc., Microsoft Corp., Google’s Alphabet Inc. and Oracle Corp.,” Brandon Kochkodin reports for Bloomberg. “Cash held overseas.”

“Cupertino, California-based Apple, which at one time had $252 billion stockpiled abroad, said it plans to repatriate money, but hasn’t reported foreign cash holdings since September,” Kochkodin reports. “Microsoft stopped at the end of last year. Google, Oracle and Netflix discontinued the disclosure this year.”

“The tax regime signed into law in December by President Donald Trump requires American-based companies to pay tax on money they’ve stashed outside the U.S. The new rules set a one-time rate of 15.5 percent on cash and 8 percent on non-cash or illiquid assets,” Kochkodin reports. “Payments can be made over eight years. Previously, companies had to pay 35 percent, but only if they brought the money back to the U.S.”

“‘The primary reason for the disclosure in the first place was that cash located in a foreign subsidiary was not the same as cash already in the U.S.,’ said J. Richard Harvey, a professor at the Villanova University law school and graduate tax program in Pennsylvania. ‘It makes sense that U.S. multinational corporations would stop disclosing the amount of cash held overseas.’ But the lack of disclosure makes it more difficult to calculate whether the new tax is ending what the Treasury Department called a ‘perverse incentive to keep foreign profits offshore.'”

Read more in the full article here.

MacDailyNews Take:

Apple, already the largest US taxpayer, anticipates repatriation tax payments of approximately $38 billion as required by recent changes to the tax law. A payment of that size would likely be the largest of its kind ever made. — Apple Inc., January 17, 2018

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