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Apple Warns Of "Material Financial Damage" If Its $171 Billion In Offshore Cash Is Jeopardized

Tyler Durden's picture




 

Despite the fact that Apple beat on both the top and bottom line on Monday on the back of better-than-expected iPhone sales (thank you China), and despite a near $20 billion increase in the company's massive cash pile which now stands at around $193 billion, shares have languised this week, falling around 5% post-earnings. 

Now, we have a possible explanation for the weakness. As FT reports, the company's 10Q contains a warning that Apple could face "material" financial damage in the event the European Commission forces Ireland to reclaim a decade's worth of tax advantages that have accrued to the company under a tax deal that may have accorded it a "selective" advantage. Here's more: 

Apple has warned investors that it could face “material” financial penalties from the European Commission’s investigation into its tax deals with Ireland — the first time it has disclosed the potential consequences of the probe.

 

Under US securities rules, a material event is usually defined as 5 per cent of a company’s average pre-tax earnings for the past three years. For Apple, which reported the highest quarterly profit ever for a US company in January, that could exceed $2.5bn, according to FT calculations.

 

The warning came in Apple’s regular 10-Q filing to the Securities and Exchange Commission on Tuesday, a day after it reported first-quarter revenues of $58bn and net income of $13.6bn.

 

Brussels has the power to order Dublin to reclaim 10 years of tax advantages granted to Apple if it finds that deals struck in 1991 and 2007 were unlawful.

 

Both the Irish government and Apple have consistently denied any wrongdoing and declined to comment on the size of any fine. However, some Brussels officials suggest any ruling could set a new record for a state-aid investigation penalty by comfortably topping €1bn.

 

Apple said in the filing: “If the European Commission were to conclude against Ireland, it could require Ireland to recover from the company past taxes covering a period of up to 10 years reflective of the disallowed state aid, and such amount could be material.”

 

Just how "material" is this "material" event for the maker of the newest, easily breakable wearable that's guaranteed to get you ridiculed by colleagues? Have a look at the following chart which shows onshore versus offshore cash and decide for yourself...

 

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Wed, 04/29/2015 - 15:48 | 6043889 HedgeAccordingly
HedgeAccordingly's picture

BUT BUT the apple watch works "well" under water! 

http://hedgeaccordingly.com/2015/04/the-apple-watch-does-surprisingly-we...

Wed, 04/29/2015 - 15:54 | 6043921 knukles
knukles's picture

Guess what?  Apple ain't the only one with this tax risk.

Wed, 04/29/2015 - 15:55 | 6043927 Herd Redirectio...
Herd Redirection Committee's picture

Hyman Roth: What I am saying is, we have now what we have always needed, real partnership with the government.

 

Wed, 04/29/2015 - 16:01 | 6043950 Save_America1st
Save_America1st's picture

the original reports before they announced the iDiot watch was that apple was going to purchase 700 tons of phyzz gold...so that they could make gold watches???????

 

If that's true and they really did buy that much gold then I've thought all along the watch was just a scam they used to sell a few of them but to them take delivery of a massive amount of gold.  Maybe they were trying to accumulate while not starting a price or supply panic? 

Wed, 04/29/2015 - 16:09 | 6043986 11b40
11b40's picture

You have too much time on your hands to sit around dreaming.

How many watches could you make with 700 tons of gold?

If they want to own gold, who do they need to ask for permission before they buy some?

Wed, 04/29/2015 - 16:17 | 6044029 Arnold
Arnold's picture

The correct answer is : one

One Watch, that does not work when covering tats either.

Wed, 04/29/2015 - 17:24 | 6044360 max2205
max2205's picture

2 bill ?  Big Fucking whooop 

Wed, 04/29/2015 - 19:00 | 6044791 BuddyEffed
BuddyEffed's picture

Ahhhh.  Another flavor of bail in, and since it's not a home grown company, why those EU citizens and politicians are probably salivating at getting their paws on those foreign monies, because all their local small potatoes are pretty much picked over. 

Who was that famous criminal who when asked why he robbed banks, he succinctly replied "Because that's where the money is".

Wed, 04/29/2015 - 19:21 | 6044865 BuddyEffed
BuddyEffed's picture

I remember back in the 98 time frame, when I started hearing buzz that Microsoft might move to Canada due to feeling picked on about the antitrust case.   That didn't sit very well with me then, since I was born and raised in south Detroit, and had even worked as a contract engineer at their Redmond campus for about 9 months.  To me, their line of reasoning was essentially saying to America, hey, were going to take our company and jobs to another country unless you let us get away this.   That's one of the reasons I gave the DOJ my best insights as to why they were being anticompetitive.  I even got a letter out of one of their SF lawyer types thanking me for my insights.  I don't know if that idea of moving to Canada was spawned internally, but I was hearing it float around Seattle from a few different sources.  Oh, and if you got the mindset to "look me up" on this, don't bother.  I've already emailed BillG directly about why I did that, and about another more personal matter, which is the Raison d'être for my handle, BuddyEffed.

Wed, 04/29/2015 - 19:52 | 6045008 espirit
espirit's picture

...and it's gone.

BooHoo.

Wed, 04/29/2015 - 16:00 | 6043946 nevadan
nevadan's picture

I wonder if Rand Paul's rhetoric about repatriating offshore money will get any traction from this.

Wed, 04/29/2015 - 16:13 | 6044009 CPL
CPL's picture

Sounds like Apple is going to get Cyprus'ed is what I'm reading here.  Might as well be Apple as the beta test to see how fast a multinational can be dismantled.  This by the way would be the opportunity to, to use the proper IT terminology, start migrating into BitCoin because that's where all the sheep will be herded.  Sheep found out side the line, meh. 

And it's not like there's enough PM's priced to move because no one is selling any and the price point doesn't make it a store of wealth, nor fungible or has any velocity.  Just another relic that goes next to federally printed junk fiat.

 

Wed, 04/29/2015 - 16:23 | 6044055 Arnold
Arnold's picture

 

 

Excellent Intelligent point.

And with  all my Hereditary mental illness set aside,  I am of two minds about this type of blatant theft of private funds to be leveraged as public debt.

However, The Apple is very Wormy and should be heading to the recycle.

Wed, 04/29/2015 - 16:41 | 6044141 CPL
CPL's picture

There have been four 'Cyprus' beta tests to date that have happened.  The only one where people got to keep their 'wealth' were the ones smart enough to jump into BitCoin.  The ones hoping for a magical stack of silver and gold to show up to transfer their millions and billions usually got fucked hard.  There just aren't enough PM's and the price is around 30000% under where it should be to match the economies people believe it's supposed to manage.

There's roughly 21 million ounces of 'coin' gold. (priced at 1200 USD per ounce, total value 25,200,000,000

There's roughly 34 million ounces of 'coin' silver. (priced at 16 USD per ounce, total value 544,000,000 )

That's as fungible as that pool of money allows a global economy to run.  $25,744,000,000...that's not even remotely close to what's spent on energy in a week for the USA.

2013 nominal GWP was approximately US$75.59 trillion...see how 25 billion doesn't fit into 75 trillion?  Gold and silver aren't money anymore unless it matches the size of the economy it's supposed to manage.   The fiat isn't worth shit.  Two choices left.  The economic methadone called BitCoin. 

Or Marxism (swap/barter system really) with a fully automated transaction system to manage trade directly...no people, just machines delivering on need versus warehousing and middle men requests.

Wed, 04/29/2015 - 20:40 | 6045161 Arnold
Arnold's picture

Oh, sorry, not the Bit coin part.

I don't have to like everything someone says to give kudos , do i?

Wed, 04/29/2015 - 17:40 | 6044422 Antifaschistische
Antifaschistische's picture

Jeopardized = taxed?

Wed, 04/29/2015 - 16:18 | 6044036 sgt_doom
sgt_doom's picture

Good point!

Is the Rockefeller family still the majority owner of Apple, BTW????

Thu, 04/30/2015 - 07:43 | 6046284 schadenfreude
schadenfreude's picture

Hello Google, show me the double Irish with a Dutch sandwich please.

Wed, 04/29/2015 - 16:34 | 6044108 doctor10
doctor10's picture

as the big banks continue to crap out they will be calling in all available capital as collateral for their derivative house of cards

watch what happens to facebook/amazon/newtflix/apple and every other "over-valued" tech/biotech/socialmedia company created to reservoir capital in plain sight and (what they all thought was) "out of reach" of the tax and regulatory juggernaut.

It'll be a REAL eye-opener for all those companies and shareholders who thought it was all going to be "theirs"; its' really the banks'.

And  everybody will  regret the lack of privacy and individual rights-'cause that banking/derivative house of cards has tracked every penny on the planet since 911, and it is a black hole that is greater than one QUADRILLION dollars at this point-and will suck everything  the earth into it.

Wed, 04/29/2015 - 18:42 | 6044716 rubiconsolutions
rubiconsolutions's picture

Can't Apple just convert all that cash to Bitcoin? Problem solved.

 

/s

Wed, 04/29/2015 - 22:39 | 6045592 ThroxxOfVron
ThroxxOfVron's picture

First, Apple is not holding cash.

Second, whatever Apple's little Hedge Fund, Braeburn Capital, is holding is likely of similar/same constitution as tht of many other Hedge Funds...

...and publicly traded shares of Apple constitute significant holdings of many Hedge Funds.

 

Think.


What is the best way to prop your share price to the moon?

Would public share buybacks coupled with even more excessive buying by your own provate Hedge Fund do the trick.

 

I thought so...

 

Wed, 04/29/2015 - 19:07 | 6044835 Model T
Model T's picture

Apple is now too big to be proscecuted; they hope ? They need to see the Prez/s bagman.

Wed, 04/29/2015 - 21:06 | 6045245 Stained Class
Stained Class's picture

"HELD OVERSEAS", there's your first lie. Yes, it's in all those offshore countries, but it's in those country's branches of CITIBANK, JPMORGAN, DOUCHEBANK etc. Which means the money is right down the hall, sitting next to the US deposits of Apple. Actually, its just a separate account on the computer screen. Irony is, it ain't a Mac screen!

So cut the shit, if Ireland does whatever, or if the IRS (they would screw Apple? Lois Lerner went free? Billary's "charitable trust" isn't busted?), well forget the IRS Apple is already their 2nd largest voluntary donor, THE MONEY IS ALREADY IN APPLE'S POCKET. Don't cry for Apple.

 

Wed, 04/29/2015 - 23:33 | 6045756 legend247
legend247's picture

I freelance over th? internet and earn about 80-85$ an hour. I was without a job for 7 months but last month my paycheck with big fat bonus was $15000 just working on my computer from my home for 5-6 hours. Here's what i have been doing... www.globe-report.com

Wed, 04/29/2015 - 15:48 | 6043892 Philo Beddoe
Philo Beddoe's picture

Time to convert that cash to gold and go boating with Stevie Wonder at the helm. 

Wed, 04/29/2015 - 15:59 | 6043940 negative rates
negative rates's picture

I was thinking more like columbus proving the world was not flat.

Wed, 04/29/2015 - 16:29 | 6044076 CPL
CPL's picture

If governments can't recover their own gold what makes anyone think the amount of gold they say there is exists?  You are going to trust the same people that both market gold's and silver's value and fail in the ability to deliver stored PM's to governments when basic shipping requests are made.  Remember these are STORED PM's, it went into a vault measured and weighted.  Then somehow the same vaults are short to deliver loaned PM's.  I doubt there is anything to deliver or to buy on the PM side but a couple of silver rounds.

Considering that the optics of value a round of silver buys two pounds of medium ground beef.  An round ounce of gold buys a used HVAC air conditioner.  That's been the price and that will always be the price of those PM's in terms of REAL value because the people managing that price and trade have screwed themselves out of it's investment potential.  Unless medium ground beef or a slightly used ac unit is an investment.  Which it's not.  The 'money' hold only the value of what it can buy.  Besides, the market is larger than 'kingdoms' now.  There are only two choices now.  BTC or marxism with systems automated trade management to directly trade goods for goods.

Take your pick, that's what's coming.

Wed, 04/29/2015 - 15:53 | 6043893 ebworthen
ebworthen's picture

Phew!  Look at all that cash held abroad! 

Pretty sweet deal for an "American" company that makes it's stuff in China and stores it's money in Ireland.

Wed, 04/29/2015 - 15:59 | 6043939 LawsofPhysics
LawsofPhysics's picture

Turns out the irish are not so dumb after all...

Wed, 04/29/2015 - 16:19 | 6044042 sgt_doom
sgt_doom's picture

Well, since the two greatest criminal masterminds of the 20th century were Joe Kennedy and Meyer Lansky, I'd say you may be on to something.

But this has been going on since 1978, when Prudential first began offshoring jobs to Ireland.

Wed, 04/29/2015 - 18:46 | 6044736 blindfaith
blindfaith's picture

 

 

 

OH, Absolutely! And, pays American workers zip shit cause an intern is proud to make nothing for that privledge. 

And cries like a baby to the American government to protect it from big bad Korean companies and all the other bad companies it hates, like the ones who use 'round corners'.  Lets not forget all the patent royalities and lawsuits that have yet to be paid, if.....

Our all American hero, bow down to Apple, as American as Putin.  Apple is no friend of Americans...period ( unless you own stock and then you are just as bad).

The grave yard where RCA rests awaits.

Wed, 04/29/2015 - 15:50 | 6043899 LawsofPhysics
LawsofPhysics's picture

LOL!!!!  With all the printing that's going on that cash is already properly fucked guys, might as well pay a little tax to keep a little peace with the government thugs.  Could buy physical as well morons. I thought these guys were smart?  My bad...

Wed, 04/29/2015 - 16:00 | 6043947 Arnold
Arnold's picture

Taxsis? We don need no stinkin taxsis!

--Treasure of Sierra Manzana

Wed, 04/29/2015 - 15:49 | 6043900 HonkyShogun
HonkyShogun's picture

How much capital do they need to launch their trademark lawsuits?

Wed, 04/29/2015 - 15:57 | 6043936 DetectiveStern
DetectiveStern's picture

It's like all your chickens not coming home to roost.

Wed, 04/29/2015 - 15:50 | 6043902 Frank N. Beans
Frank N. Beans's picture

Apple government relations people in Europe not doing their job.

Wed, 04/29/2015 - 15:54 | 6043922 centerline
centerline's picture

Guess they forgot to make a friendship payment to GS.

Wed, 04/29/2015 - 15:51 | 6043908 KnuckleDragger-X
KnuckleDragger-X's picture

Hipsters and preppies rioting in the streets.....

Wed, 04/29/2015 - 16:02 | 6043953 Arnold
Arnold's picture

Mary Anna's Turkey Shoot.

Wed, 04/29/2015 - 15:51 | 6043909 Devils Advocate
Devils Advocate's picture

They should do the right thing for america and bring it back here and pay down our national debt!!!

Wed, 04/29/2015 - 15:52 | 6043912 Niall Of The Ni...
Niall Of The Nine Hostages's picture

Jaysis. Kill that golden goose?

Things must be about to heat up in "Ukraine" if the Fourth Reich need the money that badly.

Wed, 04/29/2015 - 15:54 | 6043914 BoPeople
BoPeople's picture

"Brussels has the power to order Dublin to reclaim 10 years of tax advantages granted to Apple if it finds that deals struck in 1991 and 2007 were unlawful." (what are laws, but the selfish preferences of the powerful minority?)

And therein lies the problem with global governance. Unrelated parties, making decisions for their own benefit and against the decisions made by sovereign nations and peoples.

Look at the abortion the EU has caused (100%) in Greece.

Centralization always benefits the few at the expense of the many. It is a selfish folly generated by fear and unjustified ego.

Wed, 04/29/2015 - 15:55 | 6043929 centerline
centerline's picture

It will eventually tear the EU apart.  Just a matter of time.

Wed, 04/29/2015 - 16:03 | 6043956 11b40
11b40's picture

Yep, and Congress and Obammy are about to jam more of it down America's throat with the Trans Pacific Partnership trade agreement.  

Then, even foreign corporations can sue to void American laws that are determined harmful by a foreign court.

Total abdication to multi-nationals and their lackeys.  America is toast.

Wed, 04/29/2015 - 15:55 | 6043931 Arnold
Arnold's picture

Just as good as any other economisses statement.

Just Don't let the Apple fanboys know.

Wed, 04/29/2015 - 15:56 | 6043932 QE2XS
QE2XS's picture

Maybe Brussels will get enough to help out Tsipras for a couple months and kick the can down the road a bit.

Wed, 04/29/2015 - 15:57 | 6043934 silverer
silverer's picture

The EU is going to make it so no company will want to do business there.  They are just out scouting for wallets.  Any company that makes a profit is a target, because the EU can just take it.  No rule of law in the US, I guess not Europe either.  So far, the only country in the last five years that seems to have respect for any international laws is Russia.  This is just getting nuts.

Wed, 04/29/2015 - 16:06 | 6043965 Arnold
Arnold's picture

 

 

A call to the Knights of Ni is in order.

That is what any respectable European would do.

Wed, 04/29/2015 - 16:15 | 6044022 CarpetShag
CarpetShag's picture

Compare your tax rate with Apple's and you might change your mind.

Wed, 04/29/2015 - 16:01 | 6043951 Weaponized Innocense
Weaponized Innocense's picture

That's the nasdaqs issue among other things... Has the Dow forgotten apple just moved into its index... or visa versa or did it did it not....
Not that anyone cares!

Wed, 04/29/2015 - 16:04 | 6043964 agstacks
agstacks's picture

Psssssh! 2.5 billion?  That's nothing. That's like 250k watch sales!

Wed, 04/29/2015 - 16:07 | 6043973 Wahooo
Wahooo's picture

The EU will use the peoceeds to buy Apple stock so no impact on price.

Wed, 04/29/2015 - 16:10 | 6043990 MFL8240
MFL8240's picture

Cant Hillary and Bill help if you donate a few billion?

Wed, 04/29/2015 - 16:11 | 6043993 MasterOfTheMult...
MasterOfTheMultiverse's picture

USA historically remains a European colony after all, with US CEO's being modern slave owners (i.e. US citizens). Can't screw your colonizer, pay up fair share to your supreme EU rulers!

Wed, 04/29/2015 - 16:13 | 6044012 vegas
vegas's picture

Well, they obviously haven't given enough to the money laundering scheme known as the Clinton Foundation or its European affiliate. When you got almost 200 Large sitting there and don't "take care" of the Pols, you got a problem.

 

www.traderzoo.mobi

Wed, 04/29/2015 - 16:18 | 6044027 falak pema
falak pema's picture

tHE FIGHT between oligarchs now ripens; state moguls against plutocratic US corporates.

Too much debt not enuff assets, the government shills are now getting restive.

They don't want to lose their hard earned status in a financial tsunami that they don't control anymore...And elections approach in London never never land...Non doms riding on serfdom...sign of the tinder box times.

If it comes it comes, whence the urgency to bleed the bums from their offshore accounts.

Corporate slush funds in tax free haven Bums vs State Moguls, clash of Titans in the making.

Wed, 04/29/2015 - 16:20 | 6044044 Uncle Zuzu
Uncle Zuzu's picture

Funny it just occurred to me that the cost of reconstruction in Nepal is estimated at $10 billion. I don't know, may be cut the buyback from $140 billion to $135 billion and send $5 to Nepal. A bit unconventional as a use of shareholder cash but buybacks are a waste anyway. If AAPL wants to fall to $100, it is going to fall to $100, buyback or no buyback.

Wed, 04/29/2015 - 16:27 | 6044066 p00k1e
p00k1e's picture

Put a Spinny Apple Logo on top of Mt. Everest.  

Wed, 04/29/2015 - 16:36 | 6044123 Omen IV
Omen IV's picture

sell Mt Everest - a Logo on top woud be a real win for a credit card company

Wed, 04/29/2015 - 18:36 | 6044678 Clowns on Acid
Clowns on Acid's picture

Every Sherpa gets an iWatch.... but they are definitely not gay. 

Wed, 04/29/2015 - 16:32 | 6044090 LetsGetPhysical
LetsGetPhysical's picture

Let us continue to be tax cheats, or else..... 

Wed, 04/29/2015 - 16:32 | 6044092 wmbz
wmbz's picture

Apple should come with a new dodad, perhaps the apple pocket watch or apple mood ring. Or the apple etch-a-sketch.

They'll sell the shit out of them and make it up in volume. That plus give the slaves at foxconn a pay cut and more hours.

Wed, 04/29/2015 - 16:39 | 6044136 Gone Full Retard
Gone Full Retard's picture

What about an Apple back scratcher?

Like this one only fancier, maybe a few LEDs:
http://www.annabelchaffer.com/products/Back-Scratchers.html

Ooh ah, ooh ah said the fan boi's.

Wed, 04/29/2015 - 16:33 | 6044100 TradingTroll
TradingTroll's picture

Apple needs its own country. Too pesky relying on more independent countries like Ireland. Apple needs to just buy Greece

Wed, 04/29/2015 - 16:34 | 6044107 Wile-E-Coyote
Wile-E-Coyote's picture

This is more a shot across Ireland's bows than Apples's. Europe don't like Irelands's tax dealings, especially corp tax.

Wed, 04/29/2015 - 16:35 | 6044111 Gone Full Retard
Gone Full Retard's picture

FUCK YOU! Real Muslims don't wear Apple watches.

Wed, 04/29/2015 - 16:35 | 6044112 q99x2
q99x2's picture

Don't worry about it. They are TBTF. BTFD.

Wed, 04/29/2015 - 16:39 | 6044132 Mister Delicious
Mister Delicious's picture

Yeah, fuck Apple - always making shit, innovating, making Android seem buggy and unstable, figuring out, without big oil's explicit protections, how to pay less in taxes.

etc.

I continue to ignore entirely ZH on Apple. Very strange the hyperfocus - like one of the Tylers got fired by Jobs way back when.

How did Apple hurt ye?

Apple and Samsung, sooner or later, will team up and hit China big.

Wed, 04/29/2015 - 16:42 | 6044152 Gone Full Retard
Gone Full Retard's picture

You've been hitting the Apple Bong too much bro. Easy now, ok?

Wed, 04/29/2015 - 16:52 | 6044198 Mister Delicious
Mister Delicious's picture

No, I've been making money, dipshit.

Wed, 04/29/2015 - 16:57 | 6044228 Gone Full Retard
Gone Full Retard's picture

Careful bro. I'll kick your teeth out yo mouth.

Wed, 04/29/2015 - 18:35 | 6044672 Clowns on Acid
Clowns on Acid's picture

You make gay money.

Wed, 04/29/2015 - 16:40 | 6044144 valley chick
valley chick's picture

Looks like crAPPL has yet more problems. Got a problem with the "engine" to the gay watch.

Wed, 04/29/2015 - 17:27 | 6044371 max2205
max2205's picture

Double dutch fudge sandwich is Tims special position 

Wed, 04/29/2015 - 16:40 | 6044146 Jtrillian
Jtrillian's picture

Karma?  Is this what Apple (and others) get for tax inversions?  Perhaps they shoulda stayed in the US. 

If something sounds too good to be true, it usually is.  Apple might find this out the hard way. 

Wed, 04/29/2015 - 16:45 | 6044169 Gone Full Retard
Gone Full Retard's picture

Oh yea I know. 'She' advertised 'free blow-n-go' on craigslist but when I got there 'she' had 4 day facial hair and a golf ball in middle of her neck!

Wed, 04/29/2015 - 16:44 | 6044165 Mister Delicious
Mister Delicious's picture

here's a top ten list of corproate tax evaders from Bernie Sanders, who I'll probably vote for... given the other choices...

http://www.sanders.senate.gov/top-10-corporate-tax-avoiders

At least he' siding against AIPAC et al on the TPP

http://www.sanders.senate.gov/newsroom/photos/rally-against-the-trans-pa...

Wed, 04/29/2015 - 16:56 | 6044219 Gone Full Retard
Gone Full Retard's picture

"At least he' siding against AIPAC et al on the TPP"

Wait until they offer him the weekend Bris experience in Israel with 20 of the 'most experienced' rabbi's. He'll change his vote.

Wed, 04/29/2015 - 17:01 | 6044251 MEFOBILLS
MEFOBILLS's picture

Tax dodging in Ireland isn't their only trick:

Apple tax dodging is also enabled by going into debt; Despite having positive cash flow and savings, Apple takes out new loans.  This is a gift to bankers.

 

Oligarchs and financialized “companies” are constantly trying to shift taxes onto earned income and then untax financial assets.  Finance’s money power is aimed at government to then gain favoritism for their industry.  Senators and Representatives need money from lobbyists to buy votes, to then keep up the charade of Democracy.  Everybody has their price, especially including Senators and Representatives.

To turbo-charge new debt formations, interest will be deducted as expense, as if interest is a necessary component of production.  Paying interest to the banker is further enabled by untaxing land and untaxing unearned income, and then taxing labor’s earned income.  For every dollar streaming to banker - that is money not available to vector into taxes.  Taxes should be re-spent by government into the commons.  Credit finance short circuits the republic and hence political control as envisioned by the founders is impossibility.

Credit creating banks want debt instruments attached to all of humanity.  Their business model is debt spreading in order to collect usury.

http://www.slate.com/blogs/moneybox/2013/04/23/apple_tax_dodging_debt_will_help_the_company_avoid_taxes.html

 

The statutory corporate income tax rate is quite high—35 percent—so it turns out to be cheaper to borrow the money and pay interest than to repatriate cash and pay taxes.

This kind of monkey business is a key reason why in an ideal world we would replace the corporate income tax with higher taxes on corporate executives and rich shareholders.”

Taxing unearned will penalizes unwanted rent seeking activity, and tthis type of tax eventually returns purchasing power back to those who it was stolen from.  (High prices and loss of leisure is the cost of this scheme.)  Recovering windfalls and unearned income is done by Govt. re-spending directly into the commons or labor. Finance’s stealing causes high prices, thus middle class now requires two income families to compensate for losses to Financial Oligarchy. 

All of this funny business is a function of debt spreading corporations who have gained control through money power.

Public wealth money is much superior to “debt/credit as money.”

www.sovereignmoney.eu

Wed, 04/29/2015 - 17:11 | 6044301 GRDguy
GRDguy's picture

I can imagine a lot of those sociopathic money managers who have Apple as their #1 holding have brown underwear on right this moment.

Wed, 04/29/2015 - 17:37 | 6044414 adr
adr's picture

The offshore cash hoard doesn't really exist. It is actually made up of a decade worth of accounting fudges using pre booked sales that never materialized.

The Double Dutch Irish sandwich was created so Apple never had to pay real taxes out of real sales on the fictional bullshit they have been loading their earnings reports with.

Apple's true profit is 1/10th what they report. That goes for nearly every company represented in the stock market as well.

A true audit of Apple would turn out the same as a true audit of Fort Knox.

Wed, 04/29/2015 - 17:54 | 6044490 RadioactiveRant
RadioactiveRant's picture

Either your right and the largest company on NASDAQ is about to make some serious accounting confessions, or a cold wet patch of farmland is about to have its banking system collapsed for a second time.

Thu, 04/30/2015 - 08:05 | 6046334 schadenfreude
schadenfreude's picture

That's probably the reason why IFRS 15 got delayed for one more year

Wed, 04/29/2015 - 17:48 | 6044461 RadioactiveRant
RadioactiveRant's picture

Wonder how the Irish banks will cope with the massive withdrawal of capital from the likes of Apple, Facebook, Starbucks, GE, IBM, Eli Lilly, Adobe, Oracle, Yahoo, Microsoft, and the rest? The banks passed EU stress tests of a 3.5% fall in house prices, and a drop in GDP of 1.3% so they must be pretty solid, right?

Wed, 04/29/2015 - 21:43 | 6045397 Why.Not.
Why.Not.'s picture

The ruling will be fair and unbiased, of course. And unless you believe Apple and the Government of Ireland entered into something other than a good faith agreement, then Apple is just plain being subjected to a screwjob by Brussels. I am no fan of the company, but they made major business decisions based on agreements they believed to be binding, and now some bureaucrats are changing the rules and making it retroactive (If you think the "offense" should have been obvious at the time, you are naive and ignorant of how serious businesses operate. There would have been an army of first class lawyers doing review of applicable law and risk assessment before any agreement was signed and major investments made.). This is just another juvenile European attempt to teach the big evil American corporation a lesson, which will be quite popular with many ZH readers. 

Thu, 04/30/2015 - 04:57 | 6046107 MnemonicCarrier
MnemonicCarrier's picture

It's about time someone made a stand against corporate welfare.

Thu, 04/30/2015 - 11:03 | 6046912 Gohigher
Gohigher's picture

One World.....one acronymn  ISDS.  APL just needs to wait for TPP to pass and :

https://www.youtube.com/watch?v=MeXQBHLIPcw

 

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