Apple May Send “Billions” of Offshore Cash Back Home in 2017: Cook
In the wake of the CAD$18.9 billion tax bill, Apple CEO Tim Cook says the company could repatriate at least some of the $215 billion cash pile it has offshore, reports the Wall Street Journal.
Speaking with Irish media today, Cook called the EU Commission’s ruling “political crap” and “disappointing”. He also couldn’t understand where the 0.005% tax rate mentioned in the ruling came from, since, according to Cook, Apple paid $400 million tax in 2014 alone.
US-based companies are estimated to shelter $2 trillion from US corporate tax, which is 35%. Apple’s $215 billion offshore cash pile is among that, but the company is ready to repatriate the cash if the government is ready to make the necessary changes in the tax code to make such moves less costly.
As pointed out by the Wall Street Journal, Cook told the Washington Post in August that the company he leads won’t bring back the money to the US “until there is a fair rate”, and he also expressed his optimism about changes for next year.
The EU Commission’s ruling has simply provided another reason to bring that topic up again, it appears.
“We provisioned several billion dollars for the U.S. for payment as soon as we repatriate it, and right now I would forecast that repatriation to occur next year,” Mr. Cook said in the interview.
An Apple spokeswoman, however, counterbalanced Cook’s comment, saying that the CEO’s comments are referring to his optimism about a change in the US tax code next year, and that his comments didn’t represent any change in the company’s position on the question.
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