Apple announces to pay $38 Billion as foreign cash taxes and investment of $30 billion in the US in next five years
Apple, the world-known company, declared on January 17th that it would make a one-time cash payment of 38 billion dollars to repatriate some portion of its huge overseas holdings. However, it has not clearly specified that how much of its cash pile will be repatriated.
This announcement came in response to the recent amendments in US tax law that allows companies to pay a levy of 15.5% on their overseas cash holdings that are repatriated to the US.
According to Trump’s comment in the “Wall Street Journal”, Apple was supposed to build three huge plants in the US as part of the tax reform. However, the company’s chief executive office Tim Cook says that “We have a deep sense of responsibility to give back to our country and the people who help make our success possible.”
It is a well-known fact that this giant company Apple has faced many international criticisms for evading tax and the lawmakers of US, European Union, and the UK have openly criticized Apple’s tax policies. The company also holds 246 billion dollars in low-tax countries and the US President Trump criticized Apple’s policy of manufacturing phones, tablets, and other gadgets in overseas countries. Apple has installed its manufacturing units in many other countries which are highly cost effective and a tax saving mode for the company.
Apple said that it would spend 30 billion dollars in the next five years in the US and will help the economy by creating 20,000 new jobs.
A recent report said that in December the Irish government initiated its process to collect $15 billion from apple which was saved by evading taxes.