That's three quarters of a million iphones per head of population!
What on earth are the doing with them all? Doing modern art installations no doubt. Bloody hippies.
Apple posts the biggest quarterly profit in history
- Thread starter sanaxe1
- Start date
That's three quarters of a million iphones per head of population!
What on earth are the doing with them all? Doing modern art installations no doubt. Bloody hippies.
Is provision the same as actually paid?
That would be my query.
Articles suggest until this year Apple's Irish subsidiary paid less than 2% in Ireland as they weren't a resident company there. Now in Ireland a company has to be resident somewhere Ireland or otherwise. Presumably Apple would pick Ireland with its lower tax rate of 12.5%.
Last edited:
- Joined
- 9 Apr 2012
- Posts
- 13,361
Hardware sales make no difference. Apple pay very, very little tax.
The higher tax rate is only valid from this year, it was far less before that. They'll also have a system in place where you won't actually be able to see the tax percentage they paid (I wonder why).
Well they probably have to pay the normal rate for US sales. I doubt they could quite get away with that.
No, the "provision" is an estimate of the tax chargeable on profits arising during the period. Some of will be already be paid via installment payments and some will be due to be paid after the period, depending on the payment regimes in the various countries they operate in.
Well once you account for replacements for the bent ones
So could it be the deferred tax that would be payable once the foreign profit is repatriated in the US? It is being booked as a liability although not paid yet.
Arrgh thank you
.Ignorance somewhat relieved
.Shouldn't have expected any less from a multinational. You don't get that big playing fair.
- Joined
- 9 Apr 2012
- Posts
- 13,361
Their tax arrangement in the US is okay-ish.
It's the EU tax policy (which to be fair isn't Apple's fault) that makes this situation available.
Why doesn't the EU make it law that taxes are charged based on what is sold in each country?
It does to the point I was making about tax avoidance schemes being less favorable to companies who sell hardware vs say digital companies. Nevertheless there are still numerous tax avoidance scheme a company like Apple could (and no doubt ably do) exploit).
Obviously that is subjective however I was suggest $6.4bn is a fair chunk of income tax for one quarter and a reasonable amount considering their profit levels.
I'm not sure what you're referring to here, however as I already point out Apple have been paying income tax at about 25% on profits in the last few years.
Actually they don't, they are required to report under their applicable accounting framework. The income taxes chargeable for the last quarter were $6.4bn as already stated. Income taxes actually physcially paid during the period would appear to be $3.9bn per their cash flow statement.
Man of Honour
- Joined
- 5 Jun 2003
- Posts
- 92,031
- Location
- Falling...
As much as I'm not a fan of Apple, you have to admire them, and their ability to keep their customers loyal to their brand.
- Joined
- 9 Apr 2012
- Posts
- 13,361
I doubt they're completely honest. They wouldn't engage in discussions with a certain EU country to pay only 2% tax would they?
Impressive figures without doubt, just goes to show how much money the chinese elite have. When a country with an average annual wage of $4.8k, can afford to buy tens of millions of $1500 phones - yes, the price is really that high over there - you know its communism...
absolutely mind boggling to think they have $142 billion on hand christ if they invested that at even a meagre 4% return would still be nigh on $6billion a year wonder what their running costs are surely they can't be far off having enough cash to cover their running costs from interest alone
But then you are just a hedge fund.
Most of the assets seem to be safe securities like US treasury bills, so would be difficult to get 4%.
They cleverly paid a dividend though by borrowing in the US (not subject to tax) at an interest rate close to what the cash securities were earning.
Yes, an element of the tax provision will include that although from what I can see they don't specially report that figure. The FY14 financial statements showed a tax provision for the year of $14bn including deferred federal tax of $3.2bn. Some of that will be unpatriated profits but there will also be various other accounting adjustments included within there.
So the big question is do equities analysts take that as a real liability or apply a probability to it, and what is the probability?
After all there is a reason as to why Apple has such large foreign cash reserves.
This.