“CEO Tim Cook’s comments to an Irish radio station about Apple’s intentions to repatriate billions of dollars next year leave more questions hanging than they answer,” Tony Owusu writes for TheStreet. “‘We paid 400 (million dollars) to Ireland, we paid 400 to the U.S. and 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,’ Cook told Irish state broadcaster RTE in an interview Thursday.”
“‘While anything is only speculation for now, Cook could have commented on this to spur some further conversation for tax reform domestically as Apple definitely would rather be taxed in the U.S. as opposed to the EU (especially with the recent ruling) as long as there are some changes here that make it more reasonable to do so,’ AAP senior analyst Scott Berman said in an email today,” Owusu writes. “The seemingly sudden reversal illuminates several questions that the informal setting of the interview did not allow Cook to expand on in his comments. It isn’t clear just how much money the company plans to repatriate or what they plan to do with it.”
Once — or better yet, if — that money makes it to the U.S., there are many options for Apple that could include boosting the dividend, pursuing an acquisition or simply sitting on it until an enticing opportunity comes along. — AAP senior analyst Scott Berman
Read more in the full article here.
MacDailyNews Take: Again, 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 (for a change).
Irish government to fight EU on Apple tax – September 2, 2016
Treasury accuses EU of trying to steal U.S. tax revenues with Apple decision – September 1, 2016
Irish residents opposed to EU’s tax demand of Apple – September 1, 2016
Apple Inc. pushes back against EU tax grab – September 1, 2016
Apple may repatriate billions of dollars next year after new U.S. President takes office – September 1, 2016
U.S. tax code allows for dramatic retaliation against EU overreach in Apple case – September 1, 2016
Apple CEO Tim Cook on EU tax demand: ‘No one did anything wrong here and Ireland is being picked on… It is total political crap’ – September 1, 2016
U.S. Treasury: The European Commission’s retroactive tax demands on Apple are unfair – August 30, 2016
EU demands Apple pay massive $14.5 billion in taxes plus interest – August 30, 2016
U.S. government warns EU: Do not hit Apple with a massive back tax bill – or else – August 25, 2016