patrick.net

HydroCabron says

Hahaha! What a socialist asshole! Can you believe that Marxist, Stalinist, Castro-loving crap!

doesnt Dingell represent Detroit.. where is the beacon ?

thomaswong.1986 says

The Journalist need to start asking the big 4 Accounting Firms how all this works.

Why? It's not magic to read a 10-k, the journalists numbers look about right. Take Apples 10-k. Go to the line that says income, 55.7 billion. Then go to the statement of cash flows taxes paid, 7.7 billion giving a rate of 13.8%. Back out state taxes and foreign taxes (footnote #5) of 2.2 billion you come up with 5.3 billion for a tax rate of 9.5% which much higher than 2011 at 5.3%. Just a touch short of the 35% federal rate they are supposed to be paying to have their operations in the good old USA.

bob2356 says

Why? It's not magic to read a 10-k, the journalists numbers look about right. Take Apples 10-k. Go to the line that says income, 55.7 billion. Then go to the statement of cash flows taxes paid, 7.7 billion giving a rate of 13.8%

Journalist know shit!

Pg 61...A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate (35% in 2012, 2011 and 2010) to income before provision for income taxes for 2012, 2011, and 2010, is as follows (in millions):

$ 19,517 / 55,763 = 35%

Again there is a difference between Gaap Pre-tax vs IRS reported taxable income..

Paid vs accrued (Liable) due to temp differences plus credits. what isnt paid is still taken to the P/L and will be paid once the temp differences expire Therefore the taxable income will be much less than 55B per GAAP. You really need the Tax return for that. A typical investor doesnt need such information.

http://en.wikipedia.org/wiki/Deferred_tax

http://www.youtube.com/embed/45PARid_erY

thomaswong.1986 says

Again there is a difference between Gaap Pre-tax vs IRS reported taxable income..

Paid vs accrued (Liable) due to temp differences plus credits. what isnt paid is still taken to the P/L and will be paid once the temp differences expire Therefore the taxable income will be much less than 55B per GAAP. You really need the Tax return for that. A typical investor doesnt need such information.

So you are saying apple is lying on the 10-k, the tax return will have a significant difference in numbers? I'm sure the investors would be very interested in that. Pretty amazing how those temp differences keep happening year after year after year after year. What decade do you project they will actually expire and apple will send a really huge check to the IRS?

Very interesting you get your tax accounting information from youtube and wiki. I guess journalists don't have access to those types of research resources. Anyway thank you for confirming what I suspected all along was the basis of your alleged tax knowledge.

bob2356 says

Very interesting you get your tax accounting information from youtube and wiki. I guess journalists don't have access to those types of research resources. Anyway thank you for confirming what I suspected all along was the basis of your alleged tax knowledge.

You don't know who your dealing with.

I'd back off, if I were you: thomaswong.1986 says he reads The National Review. You can't win against that kind of intellectual firepower!

thomaswong.1986 says

For US IRS purposes its all Global income is taxable ....but we dont double tax the same international pre tax income. If less than statutory foreign tax is paid, the more US IRS collects.

http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Tax-Credit

Thomas, your comment is true for individuals. But the recent discussion is about companies. Apple USA Inc can do something that an individual cannot do; they can set up Apple Ireland Inc, assign the value of the patents to Ireland, say that the sales in EU are out of the Irish subsidiary. Apple USA Inc would only pay USA taxes on whatever Apple Ireland Inc pays to Apple USA Inc.

A person can't do this with W-2 income, as stated in your link. But that's not really relevant to this question of companies setting up subsidiaries in other places.