“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
SEE ALSO:
What Apple’s $100 billion buyback plan says about President Trump’s tax cuts – May 2, 2018
Apple plows U.S. tax cuts into record share buybacks – May 2, 2018
Apple plans to add $350 billion to U.S. economy and create over 20,000 new jobs over next 5 years, pay $38 billion in repatriated taxes, the largest ever made – January 17, 2018
Apple expected to issue less debt in 2018 now that President Trump has signed the Tax Cuts and Jobs Act – January 16, 2018
U.S Treasury: 90% of U.S. workers likely to see more money in take-home pay next month – January 13, 2018
Apple makes Trump-friendly investment in Finisar – December 13, 2017
Apple is backing up iPhone X’s Face ID and AirPods with American jobs – December 13, 2017
How Apple and Finisar are transforming the future of Sherman, Texas – December 13, 2017
Apple awards $390 million to VCSEL-maker Finisar; award will create 500 high-skill jobs at Sherman, Texas facility – December 13, 2017
Goldman Sachs sees U.S. unemployment rate hitting lowest level since the late-1960s – November 20, 2017
American consumer confidence soars to highest level since December 2000 – October 31, 2017
U.S. jobless claims plunge to lowest level since 1973 – October 19, 2017
Corning shares boosted by Apple’s $200 million investment – May 15, 2017
Apple’s billion-dollar advanced manufacturing investment is a blueprint for U.S. job growth – May 4, 2017
Apple to invest $1 billion to promote manufacturing jobs in the U.S. – May 4, 2017
Well these companies will keep their overseas fortune in the dark to avoid a cash grab by Trump or whoever is the taxman
LOL, sorry, but that’s not how it works. Since tax reform has already happened, there’s no reason to defer taxes anymore, unless you think more tax reform is coming with even lower rates.
there has been no reform ding dong
Tax reform on overseas was a sham like the last one. Pinkertons 50- Molly Mcguires 0.
The remaining few people who don’t recognize the sham that Trump is must be rolling in deep riches thanks to the exciting trickle down. Wage earners, tell us about that huge bump in your take home pay.
So sorry that all other costs are rising quickly due to isolationist policies and trade wars. Tax cuts did nothing— multinationals still have zero incentive to bring their foreign wealth stateside. Labor is cheaper overseas. The only thing tech companies do in the USA is set up subscription plans so Americans can send their money and their data abroad faster.
Indeed, the Cost of Living is quietly ratcheting up even as traditional measures say inflation is below historical norms. Have you taken a look at shrinking product sizes lately? What used to be a gallon (128 ounces or 4 quarts) or orange juice is now 89 ounces, or 2.7 quarts. That is a 30% decrease in volume…effectively a massive price increase over time including the growth in price. Products that used to be 16 ounces – bread, etc. – are now 12 ounces or less. A half gallon or quart of ice cream? Check the labels and you will be surprised. The containers have been designed to disguise the shrinkage.
Every time that someone in power, particular someone wealthy, tells you that things are great and that prosperity for the masses is just around the corner, you need to remember that they only care about their own prosperity. You get whatever trickles down from their grasp.