Apple has more money than the UK and Canada combined


Apple is set to report its quarterly financial results on Tuesday, which are expected to reveal a cash stockpile greater than the foreign cash reserves of the UK and Canada combined.

The Cupertino company is likely to reveal it has topped a quarter of a trillion dollars – an amount that is double its cash pile from just four and a half years ago.

The firm has been able to avoid US corporate taxes by keeping nearly 93 percent of its $246.09 billion total cash, cash equivalents and securities off shore – a route many major companies have taken.

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Apple is set to report its quarterly financial results on Tuesday, which is expected to greater than the foreign cash reserves of the UK and Canada combined. Firm is said to have topped a quarter of a trillion dollars, which is double its cash pile from just four and a half years ago

Apple is set to report its quarterly financial results on Tuesday, which is expected to greater than the foreign cash reserves of the UK and Canada combined. Firm is said to have topped a quarter of a trillion dollars, which is double its cash pile from just four and a half years ago

Apple is set to report its quarterly financial results on Tuesday, which is expected to greater than the foreign cash reserves of the UK and Canada combined. Firm is said to have topped a quarter of a trillion dollars, which is double its cash pile from just four and a half years ago

Which US tech giants have their billions in offshore accounts? 

In 2016, Citizens for Tax Justice, the U.S. PIRG Education Fund and the Institute on Taxation and Economic Policy published a document containing a list of the top 20 American companies which kept their money offshore.

The document, called Offshore Shell Games 2016, outlined which companies had the most amount of tax havens abroad and which companies had the most amount of money offshore.

The following tech giants were included in the list.

Numbers are the amount of money held offshore in millions of dollars. 

1. Apple – $214,900

2. Microsoft – $124,000

3. Google – $58,300

4. Cisco Systems – $58,000

5.  Hewlett-Packard – $47,200

Not only will Apple’s results show a total of cash that is greater than two countries, but it is also said to exceed the market values of Wal-Mart Stores In and Procter & Gamble Co., Tripp Mickle reported with The Wall Street Journal, who also noted that the results exclude any and all Apple’s debt.

Apple cash and cash equivalents are dispersed throughout both’ short- and long-term securities, including corporate securities, U.S. Treasury securities and money-market funds,’ Mickle explained.

Apple, among many other major corporations, keep a majority of their funds in other countries in order to avoid paying the 35 percent US corporate-income-tax rate.

However, last week the Trump administration unveiled plans to dramatically cut taxes for US businesses and individuals, slashing the corporate rate to 15 percent, but the once-in-a-generation overhaul is headed for a tough fight in Congress.

And The Wall Street Journal noted that if the plan were to go through, it would allow Apple to use their money wisely ‘through acquisitions or by sending more to shareholders’.

Apple CEO Tim Cook (pictured) is not opposed to bringing more cash to the US if the changes allow it and CFO, Luca Maestri, also explained that the changes 'would give Apple flexibility to do more capital returns'

Apple CEO Tim Cook (pictured) is not opposed to bringing more cash to the US if the changes allow it and CFO, Luca Maestri, also explained that the changes 'would give Apple flexibility to do more capital returns'

Apple CEO Tim Cook (pictured) is not opposed to bringing more cash to the US if the changes allow it and CFO, Luca Maestri, also explained that the changes ‘would give Apple flexibility to do more capital returns’

Apple CEO Tim Cook is not opposed to bringing more cash to the US if the changes allow it and CFO, Luca Maestri, also explained that the changes ‘would give Apple flexibility to do more capital returns’.

‘What we would do with it, let’s wait and see exactly what it is, but as I’ve said before we are always looking at acquisitions,’ Cook told investors on the company’s first-quarter earnings call in January. 

Last year, the tech giant was named as the biggest corporate tax avoider in the United States after booking $218.55 billion (£171.6 billion) of profit offshore last year.

TRUMP’S MAJOR TAX CUTS 

Slashing taxes on income and business was a key part of Trump’s election platform.

Under Trump’s proposals, American companies would move from being the most highly taxed among the Group of 20 countries to among the lowest. 

Tax rates would fall below those of neighboring Mexico and Canada, which Trump has accused of shortchanging the United States in trade deals. The plan’s signature reform would be a dramatic reduction of the corporate tax rate, from the current 35 percent to 15 percent.

Tax brackets for individuals would be compressed from seven to just three — 10 percent, 25 percent and 35 percent, lower than the current top rate of 39.6 percent.

Studies of the results of past tax holidays found that most of the offshore cash brought home by U.S. companies was used to buy back shares or make acquisitions, not to fund investments in production capacity or jobs. 

The tech giant was able to save $65.08 billion (£51.1 billion) that it should have paid in tax thanks to its convoluted arrangements.

The report revealed that last year three quarters of the Fortune 500 companies use subsidiaries in offshore tax havens where they sent a total of $2.42 trillion (£1.9 trillion) of income.

In the US alone this amounted to $715.62 billion (£561.9 billion) in tax which they avoided paying.

The report said many of the biggest companies in the world use a foreign office to ‘disguise’ their profits as coming from another country even if they are not. 

 



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