TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Thursday, January 18, 2018

Apple To Pay $38 Billion In Taxes To Bring Cash Hoard Back To U.S. And Build U.S. Campus

Apple
New York Times, Apple, Capitalizing on New Tax Law, Plans to Bring Billions in Cash Back to U.S.:

Apple, which had long deferred paying taxes on its foreign earnings and had become synonymous with hoarding money overseas, unveiled plans on Wednesday that would bring back the vast majority of the $252 billion in cash that it held abroad and said it would make a sizable investment in the United States.

With the moves, Apple took advantage of the new tax code that President Trump signed into law last month. A provision allows for a one-time repatriation of corporate cash held abroad at a lower tax rate than what would have been paid under the previous tax plan. Apple, which has 94 percent of its total cash of $269 billion outside the United States, said it would make a one-time tax payment of $38 billion on the repatriated cash.

For years, Apple had said it would not bring its foreign earnings back to the United States until the corporate tax code changed, because such a move would be too costly. Now Apple’s bet to hold back on paying such taxes is reaping rewards under the Trump administration.

Wall Street Journal, Apple to Pay $38 Billion in Taxes on Cash Overseas, Build New U.S. Campus

https://taxprof.typepad.com/taxprof_blog/2018/01/apple-to-pay-38-billion-in-taxes-to-bring-cash-horde-back-to-us-and-build-us-campus.html

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Comments

In other news...Florida Power and Light announced the planned $1.3 billion in rate increases to be passed on to consumers in Florida starting in March -- Hurricane Irma damage and recovery fund -- will be rescinded. Funding will come from expected tax savings from Tax Reform.

Posted by: MG | Jan 18, 2018 11:16:25 AM