One problem you wouldn't think Apple has is money. Well, it seems that that's exactly one of the problems the company has. However, it is not lack thereof but instead the location.
Apple holds much of its cash overseas where it is not as convenient as it would be in the US. Tim Cook and company have to find out a way to use it or transfer it without paying a huge amount of US taxes, Bloomberg reports.
The cupertino tech giant has now almost 90 percent of its cash stored in offshore subsidiaries. That makes this a 200 billion – yes, billion – dollar problem.
These subsidiaries are not required to pay the 35 percent corporate tax rate of United States but it also means that Apple cannot use them for acquisitions – or much of anything really.
Obviously Apple is trying to lobby a tax reform for the corporate tax that is the highest in the industrialized world while some want the cash overseas to be taxes in the same fashion as in the US.
The cupertino tech giant has now almost 90 percent of its cash stored in offshore subsidiaries. That makes this a 200 billion – yes, billion – dollar problem.
These subsidiaries are not required to pay the 35 percent corporate tax rate of United States but it also means that Apple cannot use them for acquisitions – or much of anything really.
Obviously Apple is trying to lobby a tax reform for the corporate tax that is the highest in the industrialized world while some want the cash overseas to be taxes in the same fashion as in the US.
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Apple
