{"id":20440,"date":"2013-05-01T08:28:28","date_gmt":"2013-05-01T07:28:28","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=20440"},"modified":"2013-05-01T08:28:28","modified_gmt":"2013-05-01T07:28:28","slug":"apple-is-an-offshore-junkie","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2013\/05\/01\/apple-is-an-offshore-junkie\/","title":{"rendered":"Apple is an offshore junkie"},"content":{"rendered":"

The FT's reported this morning that<\/a>:<\/p>\n

Apple\u00a0sold bonds worth $17bn on Tuesday, the world\u2019s largest corporate debt sale, as the iPhone maker raised capital to finance a $100bn cash return to shareholders.<\/p>\n

Apple, which had no debt before Tuesday\u2019s sale, has taken advantage of low interest rates to fund its\u00a0<\/span>return of $100bn to shareholders\u00a0<\/a>over the next three years. <\/span><\/p>\n

The cash splurge is designed to appease investors concerned about slowing sales growth and comes a week after Apple reported its first year-over-year drop in net income in almost a decade.<\/span><\/p><\/blockquote>\n

But why would it borrow to return money to shareholders? After all, as the FT also notes:<\/p>\n

Apple has $145bn of cash on its balance sheet<\/p><\/blockquote>\n

So why did it need $17 billion more cash?<\/p>\n

The answer is in where the cash is:<\/p>\n

$45bn is held in the US<\/p><\/blockquote>\n

And in what that means;<\/p>\n

Repatriating foreign reserves would be costly due to tax implications.<\/p><\/blockquote>\n

So, as I've long argued, holding cash offshore is not in\u00a0shareholder's\u00a0interests: the fact is that a company, like Apple, who has not taken into account the tax cost of\u00a0holding\u00a0its cash offshore, can't pay that money to shareholders and has to undertake a programme of borrowing to pay dividends.<\/p>\n

Only an\u00a0offshore\u00a0junkie, so dedicated to tax avoidance that they have forgotten the true purpose of their enterprise, could end up in such a farcical position.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The FT’s reported this morning that: Apple\u00a0sold bonds worth $17bn on Tuesday, the world\u2019s largest corporate debt sale, as the iPhone maker raised capital to
 Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,32],"tags":[],"class_list":["post-20440","post","type-post","status-publish","format-standard","hentry","category-tax-avoidance","category-tax-havens"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/20440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=20440"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/20440\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=20440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=20440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=20440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}