Wednesday, May 22, 2013

A different view of geography

Apple - and our tax codes - have a strange definition of "overseas".  If a company makes money overseas and keeps it there, there are no taxes due the U.S.A.  Seems pretty straightforward.  Right?  However, Apple has $102 billion in offshore profits stored in banks in a foreign place called New York City.  Furthermore, these funds are managed by a group of Apple employees based in another foreign place, Reno, Nevada. However, Apple has "assigned' these funds to its Irish subsidiaries; thus, it is considered to be under foreign control and not subject to our income tax.

Does this make any sense to you?

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