From MSNBC: On Tuesday, Apple is set to report financial results for the
second quarter. Analysts are expecting net income of $9.8 billion. But whatever
figure Apple reports won't reflect its true profit, because the company hides
some of it with an unusual tax maneuver.
Apple Inc., already the world's most valuable company,
understates its profits compared with other multinationals. It's building up an
overlooked asset in the form of billions of dollars, tucked away for tax bills
it may never pay.
Tax experts say the company could easily eliminate these
phantom tax obligations. That would boost Apple's profits for the past three
years by as much $10.5 billion, according to calculations by The Associated
Press.
While investors might rejoice if Apple suddenly added $10.5
billion to its profits, unilaterally erasing a massive U.S. tax obligation
could tarnish its reputation as a relatively responsible payer of U.S. taxes.
Instead, the company is lobbying to change U.S. law so that it can erase its
liabilities in a less conspicuous fashion. The issue has become part of the
presidential campaign.
Like other companies, Apple typically keeps profits on
overseas sales in overseas accounts. When someone buys an iPad in Paris or
Sydney, for instance, the profit stays outside the US…
http://www.msnbc.msn.com/id/48289598/ns/business-us_business/#.UA5HurT2bhc
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