Dwarfed by his own success – CEO Tim Cook and Apple’s money making monster
By Jamie Robertson
It can invest in its own development, and it is spending an estimated $5bn on the 176-acre Apple Campus headquarters site.
But still the money keeps rolling in.
Most of it gets parked in what the accounts call “cash and cash equivalents” and short and long term marketable securities: government and corporate bonds.
Apple manages the cash through a subsidiary, Braeburn Capital, based in Reno, Nevada which has no state corporate income tax, or taxes on corporate shares.
Debt? Why on earth, when you have more wealth in your piggy bank than the average developing nation generates in a year, would you want to borrow more?
The answer is that little of that cash is easily accessible to pay shareholders. Some 89% of it lies offshore out of the hands of the Inland Revenue Service.
Chief Executive Tim Cook told Congress two years ago that much of it could eventually come back to the US.
He even admitted Apple would be happy to pay more tax, but only if there was a “dramatic simplification of the corporate tax code” including a “reasonable tax on foreign earnings that allows the free flow of capital back to the United States”.
But of course if the money did flow freely back to the US, no one is guaranteeing it would be invested any more wisely than it is at the moment.
Read more at BBC News
And there it is …with Multinational Companies and why the US Government has a loss of revenue from taxation.
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It’s not only the US government but US states with Balanced Budgets that have to have the Federal Government make up the difference because they give away in tax revenue’s to multinational companies.
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