Apple is holding more cash overseas than any other corporation in the U.S. and it’s paying off big time by helping the company avoid an estimated $59.2 billion tax bill.
Of course, Apple’s not alone in holding massive amounts of cash overseas. A new study released today found that the 500 largest companies hold more than $2.1 trillion in profits offshore to dodge paying U.S. taxes. Collectively, the companies would owe an estimated $620 billion if they repatriated the funds.
Apple currently holds $181.1 billion offshore in three overseas tax havens. The study says the iPhone maker would owe an estimated $59.2 billion.
Other companies holding massive amounts of cash offshore include Microsoft with $108.3 billion in five tax haven subsidiaries. General Electric has $119 billion in 18 tax havens, while drug company Pfizer has $74 billion in 151 subsidiaries.
Instead of bringing the cash back to the US and paying taxes, Apple has repeatedly decided to borrow money to pay for things like its stock buyback program. Tim Cook has publicly commented on the high US tax rate saying it’s not a viable option for businesses, and that the US needs to restructure its corporate tax code.
