Corporate Tax: Apple/ Microsoft have cash of $108bn offshore; US reform could hit Ireland - - Part 2
Corporate Tax: American companies hold more than $1trn in cash overseas as US tax only becomes payable when profits are repatriated. Apple and Microsoft currently hold $108bn between them offshore. US tax reform is likely in coming years and the common corporate tax territorial system regime where only domestic profits are taxed, could be an option for the US Congress. However, without some measures such as a minimum tax to pay, a territorial system would encourage even more profit-shifting by American companies to low tax jurisdictions such as Ireland…Bloomberg reported last June that Cisco Systems, the top Internet network hardware company, has cut its corporate taxes by $7bn since 2005 by booking roughly half its worldwide profits at a subsidiary at the foot of the Swiss Alps that employs about 100 people.
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