Apple to pay $38 billion in U.S. taxes on overseas cash

Marie Harrington
January 19, 2018

CNBC also reported that Apple's announcement in the United States was "in part because of the new tax law".

The tech firm did not say how much of the $252.3 billion cash reserves now kept overseas it would bring home.

The company said Wednesday over the next five years, it would create 20,000 jobs at Apple and contribute $350 billion to the us economy.

Apple plans to take advantage of that provision to bring back most of its roughly $252 billion in offshore cash, generating a tax bill of about $38 billion. It will need to cough up $97 billion to cover debts for share buybacks and dividends.

Over $10 billion of Apple's expanded capital expenditures will be investments in data centers across the US.

Walter Piecyk, managing director for TMT Research at BTIG Research, said he could not yet tell whether the U.

Apple, however, did not say what impact this would have on its worldwide investment plan. Reuters Breakingviews estimated that could have increased U.

Chicago-area sites proposed for HQ2 include developer Sterling Bay's more than 70-acre Lincoln Yards development along Lincoln Park and Bucktown; Related Midwest's 62-acre site along the Chicago River in the South Loop; the vacant old main post office; 37 acres of riverfront land owned by Tribune Media, north of downtown; and a planned redevelopment of the former Michael Reese Hospital site and adjacent land by a group including Farpoint Development and Draper and Kramer.

Trump described the move by as a victory for his efforts.

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Apple announced today it will start to repatriate back to America some of the massive profits it accumulated outside the U.S. - and will use the cash to Make America Great Again.

It was revealed late a year ago in leaked financial documents known as the Paradise Papers that Apple shifted much of its offshore wealth from Ireland to a tax haven in the British Isles. Before 2016's election, Trump criticized the California giant's practices.

"Let me be clear, there are large parts of this that are a result of the tax reform, and there's large parts of this that we would have done in any situation."

In addition to the tax payment, Apple said over the next few years it will significantly add to the 84,000 employees it now has in the US.

"They were pretty clear that the money they will bring back into the USA will be for more jobs, strategic acquisitions, and more real estate and facilities to handle their expected growth", said Creative Strategies analyst Tim Bajarin in an email after speaking to Apple representatives. Apple has provided a curriculum for kindergarten through 12th grades on using Swift, the programming language developed by the company.

Apple expects to invest over $30 billion in capital expenditures in the United States over the next five years, and hire through existing campuses, in addition to opening the new site.

Apple already employs 84,000 people in all 50 U.S. states. S. investment plan could make it easier for the company to give more cash to shareholders. "And Apple hasn't historically done big M&A", he said. The fund last put $390 million behind Finisar, the Texas-based supplier of lasers used in the iPhone's Face ID facial recognition system. Amazon finished taking applications from cities in October for its second campus.

Amazon set off a scramble between cities across the nation to host the headquarters, and Apple's announcement stirred broad interest. "He called me, and he said they are going forward", Trump was quoted as saying. Apple did not ask cities to submit bids for the campus or request subsidies or other incentives. The company, which opened a new headquarters in Cupertino a year ago, said its new United States site initially will be focused on employees who provide technical support to Apple product users.

Other reports by TheSundaySentinel

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