Re:A Tax Expert Takes Tim Cook's EU Letter Apart Point by Point
by sharemywin on Thursday September 01, 2016 @09:33AM
(#12405081)
Apple has a big pile of cash from not paying taxes and they don't know what to do with it anyway. That's why their stock didn't move much because large pile of cash(tax shelter cash) - 15B still equals large pile of cash doing nothing for investors.
Re:A Tax Expert Takes Tim Cook's EU Letter Apart Point by Point
by bko on Thursday September 01, 2016 @09:46AM
(#12405180)
The value of that cash is baked into the stock price. It's tied up for now but investors have some expectation that they will ultimately benefit from the cash. Right now I believe they are using that money as collateral for debt which is being used to pay dividends.
I can't spell out exactly how this will impact debt and equity valuations but to assume that a $14 billion tax hit will have no impact whatsoever is a bit naive.
Re:A Tax Expert Takes Tim Cook's EU Letter Apart Point by Point
by sharemywin on Friday September 02, 2016 @10:44PM
(#12417474)
it's P/E is 12 how much lower would it go?
I'm not sure this is true. It's not a coincidence that many small businesses often pay their employees under the table, ignore minimum wage and overtime laws, and often prefer cash payments. The IRS chooses to go after the individuals where there is the biggest spread between how much they can collect and how much it costs to go after that person. If a small business is reporting suspiciously low income, the cost of going after them won't be worth it.
> Every individual should support the EU. If the EU is defeated here it will be a loss to the small man and small business
"Apple" doesn't pay these fees. The shareholders do. You're taking away that money from investors (401k, pension funds, ordinary investors, hedge fund investors, Tim Cook) and giving it to Irish politicians. This may be a good or bad thing, but you cannot argue that this money is coming from some giant black pit called Apple.