Wednesday, October 9, 2013
All Things D: SEC Clears Apple’s Tax Disclosures:
Four months after opening its review
of Apple’s finances, the Securities and Exchange Commission has closed
it, having found nothing untoward about the company’s handling of its
overseas cash and related tax policies.
In a September letter
to Apple, released late last week, the SEC said it had completed its
review of the company’s fiscal 2012 annual report, and would take no
action against it at this time. Evidently, there’s no need to, as the
agency has found Apple’s disclosures to be sufficient, particularly now
that it has agreed to provide investors with more information
about its foreign cash, tax policies and plans for reinvestment of
foreign earnings. In the SEC’s eyes, Apple accounts for taxes in
accordance with generally accepted accounting principles.
Wall Street Journal editorial: Apple of Their Eye:
An SEC Investigation Approves the Company's Overseas Tax Strategies:
Senate investigations kingpin Carl Levin (D., Mich.) loudly accused
Apple in May of being "the Holy Grail of tax avoidance," whatever that
means, and the folks at the Securities and Exchange Commission quickly
followed orders. The resulting SEC investigation of the tech maker's tax
strategies has now cleared Apple of wrongdoing. Could it be that there
was never any evidence behind Mr. Levin's smears? ...
The real outrage in this spectacle is that U.S. profits are hit with a
combined federal and state statutory tax rate of 39.1% that is the
developed world's highest. A close second is federal regulators
threatening a successful business to please their political masters.