We reported a few weeks ago that Apple had parked scads of cash overseas, some $74 billion in cash. Looking forward to tomorrow’s earnings report, however, it can be argued that their financial numbers could be much higher if the cash, mainly parked overseas due to potential tax liabilities in the US, were returned to US Apple coffers.
According to the Associated Press and reported by USA Today, Apple typically understates its profits when compared with other multinational corporations, due to this “phantom tax” liability, a tax they may never have to pay. Like many multinationals, Apple is counting on the US lowering tax rates in the near future, minimizing the amount of tax they’d end up owing if they brought that $74 billion home.
Apple's taxes due and tax rate for 2011 don't match reported numbers
Earlier in this day, we reported on a New York Times piece in which the paper claimed that Apple was using a variety of measure to avoid paying U.S. income tax. It turns out that the Times based key pieces of its information on a study that had been discredited two weeks prior.
The data used by the Times included a report by the Greenlining Institute, which made errors in computing Apple’s supposed tax rate at 9.8% for the 2011. The data used by the report effectively compared Apple’s 2011 profit with taxes paid by the company for profits in 2010 and drew unfounded conclusions as a result.
This photogenic gang might be waiting for you outside your local Apple Store on June 4th.
Prepare to get buckets of blood splattered all over your new white iPhone as you exit the Apple Store next week. A group that feels that Apple tries to weasel its way out of too many taxes will be protesting Apple’s retail locations around the country.
I’ve been exploring the Mac App Store and discovered another little tidbit that might pose a problem for some frugally minded people – like me. I was looking for apps that I already owned that might be in the App Store and I found one called RapidWeaver.
I was about to purchase it in the Mac App Store until I found out it would cost more to do so. Why did it cost more? The answer is simple – sales taxes and that is what led me to halt one Mac App Store application purchase this evening.