Bloomberg- 130503

Apple Inc.’s sale of bonds this week was the biggest corporate offering on record. Photographer: Krisztian Bocsi/Bloomberg

Apple Avoids $9.2 Billion in Taxes With Debt Deal

By Peter Burrows - May 3, 2013 1:01 PM GMT+0900

read more from :http://www.bloomberg.com/news/2013-05-02/apple-avoids-9-2-billion-in-taxes-with-debt-deal.html


Summary: Apple Incs. avoided $9.2 billion in taxes by financing part of a $55 billion stock buyback with debt, Moody's Investment Services estimated. Based on current rates, Apple should pay interest of about $308 million a year on the $17 billion bond offering. In general, if the funds had come from Apple's offshore cash about $100 billion, iPhone makers did have to pay a 35% tax to repatriate the money. It means that Apple avoided taxes of $9.2 billion. Chief Financial Officer Peter Oppenheimer said on an April 23 conference will be held in order to provide benefits, a reduction cost of capital and an efficient leverage of the balance sheet. 

Opinion: This must be lies! It does not make sense that Apple Incs. has not paid the tax of that big amount of tax. As Apple Incorporation is known as one the biggest and most successful business in the world, they should show respectfulness to the law and be the good model to every business and individual as well. And keeping the law can gain the trust from others. 

Related to Economics: As the demand of the products increase, the incorporation should expect consumer's expectation. The more honest the business be, the more consumers can trust and buy the product from the company.