Apple has done a lot in the past year. It released the iPhone 5, three iPads and too many Macs to list. In doing this, Apple became the most valuable company in the world, which is certainly Cupertino’s greatest accolade of 2012.
Of all its earnings, a whopping $36.8 billion was earned by Apple in overseas sales, but the company paid back a comparatively measly $713 million in taxes. This means that Apple only paid 1.9% income tax for all its overseas earnings for the fiscal year of 2012.
Now, before anyone has a rage-filled rant about how Apple is made up of crooks, and people start telling me that ‘Android rules’, I’d like to say that it was all perfectly legal. Apple keeps overseas profits outside of the U.S to avoid very steep (35%) income tax, thus saving a hell of a lot of money, but this means that Apple can’t do as much with its hard earned dough. Because of this Apple has a colossal $82.6 billion of its wealth stowed away overseas. To keep this money without heavy taxes getting in its way, Apple uses some cunning accounting strategies, essentially moving cash around countries with low tax rates.
Tim Cook obviously wants this money on home soil, so has requested that Washington consider a ‘Tax holiday’, allowing companies with a large amount of money overseas to bring it into the U.S without facing any taxes.
Via: Cult of Mac